The amount of good A given up for good B in trade is the
A)Comparative advantage.
B)Absolute advantage.
C)Terms of trade.
D)Exploitation of consumers.

Question

Quizplus · Accepted Answer

The amount of good A given up for good B in trade is referred to as the terms of trade. This represents the exchange ratio between two goods and is determined by their relative opportunity costs. Therefore, choice C is the correct answer. Choices A and B are not appropriate as they refer to different concepts of trade, while choice D is not relevant to the given scenario.

The Amount of Good a Given Up for Good B