The limits of the terms of trade are determined by the:
a. distribution costs in each country.
b. stock of foreign exchange in each country.
c. average total costs of producing the commodities in each country.
d. opportunity costs in each country.
e. currency exchange rate between the trading partners.
d
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In the 1800s, early agricultural activity in the U.S. used the technology of the time which was based on
(a) handwork and animal power. (b) waterpower and the steam engine. (c) the internal combustion engine and electric motor. (d) large-scale enterprises using water driven machinery.
A monopolist faces a market demand curve with a constant elasticity of -2. The monopoly's production function is Q = 4L and its output price is given by p. What is the monopoly's marginal revenue product of labor function?
A) MRPL = 2p B) MRPL = 4p C) MRPL = 10 - 2p D) MRPL = 5 + 3.5p
A software design company wants to pursue a platform strategy. Which of the following strategies is the firm likely to want to adopt?
a. Focus on softening rivalry b. Encourage complementary innovation c. Encourage substitute innovation d. All of the above
Why do economists consider perfect competition to be the most efficient market structure?
What will be an ideal response?