If the Terms of Trade Between Any Two Countries Lie

question 123

Multiple Choice

If the terms of trade between any two countries lie somewhere between their respective opportunity costs,then the effects of trade will include

• A)Consumption outside the production possibilities curve for both countries.
• B)Less output for both countries.
• C)Less interdependence between the economies of the two countries.
• D)An expansion of the production possibilities for both countries.

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Definitions:

Permanent Disabilities

Long-term impairments that significantly affect one's ability to perform daily activities, which are not expected to improve significantly over time.

Habituated

The process by which an organism decreases or ceases its responses to a repetitive stimulus after being repeatedly exposed to it.

Over-Stimulated

A condition arising from excessive stimuli, leading to a state of overload or heightened agitation and possibly difficulty concentrating or relaxing.

Adjusted

Altered or modified to fit certain conditions or requirements.