The terms of trade refers to
A) the rules and regulations that countries must adhere to when trading.
B) the ratio at which a country can trade its exports for imports from other countries.
C) the role of the government in overseeing international trade.
D) a legal document that specifies the trade quantities agreed to by two countries.
Answer: B
You might also like to view...
If a farmer’s opportunity cost of producing 50,000 bushels of wheat is 20,000 fewer bushels of soybeans, then his or her opportunity cost of producing 50,000 bushels of soybeans must also be 20,000 fewer bushels of wheat.
Answer the following statement true (T) or false (F)
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and reserve-related (central bank) transactions in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete
equilibrium. a. The real risk-free interest rate remains the same and reserve-related (central bank) transactions become more positive (or less negative). b. The real risk-free interest rate falls and reserve-related (central bank) transactions become more negative (or less positive). c. The real risk-free interest rate falls and reserve-related (central bank) transactions remain the same. d. The real risk-free interest rate and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
What happens to a market in equilibrium when there is an increase in supply?
a) excess supply means that producers will make less of the good b) quantity demanded will exceed quantity supplied, so the price will drop c) quantity supplied will exceed quantity demanded, so the price will drop d) undersupply means that the good will become very expensive
Which of the following is a cost associated with recessions and unemployment?
A. worsening of the nation's balance of payments B. increased output in the future C. increased real output D. the psychological harm done to the unemployed