The amount of good A given up for good B in trade is the

Question

Quizplus · Accepted Answer

The amount of good A given up for good B in trade is known as the terms of trade. This reflects the agreement made between two parties regarding the exchange rate between the two goods. Therefore, the correct answer is C. Comparative advantage refers to the ability of a country to produce a good or service at a lower opportunity cost than another country, while absolute advantage refers to the ability of a country to produce more of a good or service with the same resources as another country. These concepts are not related to the terms of trade.

The Amount of Good a Given Up for Good B