The ratio at which a country can exchange domestic products for imported products is called the terms of trade.

Answer the following statement true (T) or false (F)


True

Economics

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A bowed out production possibility frontier shows that the

A) opportunity cost of a good is constant as more of the good is produced. B) opportunity cost of a good decreases as more of the good is produced. C) opportunity cost of a good increases as more of the good is produced. D) opportunity cost relationship is linear. E) opportunity cost of producing another good is negative.

Economics

Which of the following is a characteristic of a real option?

a. The call option on a stock exercised if some average of the prices of its components passes a critical level. b. The right to postpone construction on the basis of net present value calculation. c. The put option on a stock that need to be paid for (at a predetermined price) if they are actually exercised. d. The right to sell an option at the strike price.

Economics

The market demand curve is ____ and the demand curve for a single firm in a competitive market is ____

A) horizontal, horizontal B) downward sloping, horizontal C) downward sloping, downward sloping D) horizontal, downward sloping

Economics

The adult population of a country is 200 million. Of this population, 120 million are employed and 20 million are unemployed. The labor-force participation rate in this country is _____

a. 50% b. 30% c. 70% d. 35%

Economics