The ratio (in physical units)at which two countries trade goods is known as the
A)opportunity cost
B)marginal social cost
C)price to earnings ratio
D)comparative advantage ratio
E)terms of trade

Question

Quizplus · Accepted Answer

The ratio at which two countries trade goods is known as the "terms of trade." This refers to the amount of imports that can be obtained for a unit of exports. It is important for countries to have favorable terms of trade in order to improve their economic position in the global market.

The Ratio (In Physical Units)at Which Two Countries Trade Goods