The terms of trade
A) equal the ratio of opportunity costs of production in two countries
B) equal the ratio of marginal production costs in two countries
C) is the quantity of one good that is exchanged for one unit of another good
D) are determined by absolute advantage
E) equal the ratio of average production costs in two countries
Correct Answer:
Verified
Q36: Consider the following table on labor hours
Q37: Consider the following information on labor hours
Q38: Comparative advantage is determined by the
A)elasticities of
Q39: In a Mexican factory,each worker can produce
Q40: If Canada can produce 500 TV sets
Q42: If countries begin to specialize according to
Q43: Figure 16-4
Number of workers needed to produce
Q44: If 50 units of resources can produce
Q45: The limits of the terms of trade
Q46: The opportunity costs of production in two
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