The rate at which a country can trade domestic products for imported products is its:

Question

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The rate at which a country can trade domestic products for imported products is its terms of trade. This is because terms of trade represent the ratio at which a country can exchange its exports for imports. Option A refers to the rate at which a country can transform one good into another, option B refers to the rate at which consumers substitute one product for another in the market, and option D refers to the maximum combination of goods an economy can produce with its given resources and technology.

The Rate at Which a Country Can Trade Domestic Products