The rate at which units of one product can be exchanged for units of another product is called the terms of trade.

Question

Quizplus · Accepted Answer

The statement is true. Terms of trade refers to the ratio at which a country can export one unit of a particular good in exchange for another country's export of a different good. In other words, it is the rate at which goods and services from one country are exchanged for goods and services from another country.

The Rate at Which Units of One Product Can Be