Multiple Choice
The "terms of trade" principle refers to the statement that
A) the terms of trade must be clearly stated before any trade takes place.
B) specialization and trade shifts out the world's PPC.
C) specialization and trade move the world closer to its PPC.
D) each producer will gain from specialization and trade as long as the terms of trade are between the producers' opportunity costs of production.
Correct Answer:
Verified
Correct Answer:
Verified
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