Multiple Choice
The terms of trade
A) equal the equilibrium price in a competitive market
B) equal a nation's imports minus its exports
C) determine whether specialization according to comparative advantage is economically rational
D) are equal to 1.0 in market equilibrium
E) determine how the gains from international trade are distributed among countries
Correct Answer:
Verified
Correct Answer:
Verified
Q37: The ratio (in physical units)at which two
Q38: In a Mexican factory,each worker can produce
Q39: If there are high transportation costs<br>A)the terms
Q40: Suppose the opportunity cost is a constant
Q41: When a nation begins to export a
Q43: The terms of trade<br>A)equal the ratio of
Q44: For each watch Switzerland produces,it gives up
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