What are the terms of exchange and how are these terms related to the price?
What will be an ideal response?
The terms of exchange are the terms under which trading takes place. Usually, the terms of exchange specify the price at which the good is traded, which is determined by the interaction of supply and demand.
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Privatization of a state-owned monopoly can
A) allow governments to capture future producer surplus. B) allow governments to be more efficient. C) reduce bribery of government officials. D) increases chances of reelection for politicians.
The Lorenz curve and the Gini coefficient are similar in that both
a. are numerical measurements b. illustrate dispersions of income throughout an economy c. represent after tax incomes d. are abstract models of the real world but there are no data allowing us to apply it to the real world e. compare the levels of incomes earned in different countries
The long-run effect of rent control on an area includes
A. less investment into the real estate market in the area. B. many new luxury apartments new luxury apartments will be built. C. rampant building of new low-income housing. D. new investors into the real estate market in the area.
When a bank buys a bond from the Fed
A. its reserves initially increase. B. its liabilities decrease. C. its reserves initially decrease. D. its liabilities increase.