If the International Terms of Trade Settles at a Level

question 6

Multiple Choice

If the international terms of trade settles at a level that is between each country's opportunity cost,

• A) there is no basis for gainful trade for either country.
• B) both countries gain from trade.
• C) only one country gains from trade.
• D) one country gains and the other country loses from trade.

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Definitions:

Need for Cognition

A personal trait that describes an individual's enjoyment and engagement in thinking processes and intellectual activities.

Situations Require Thinking

Circumstances that necessitate careful consideration and mental effort to resolve or understand.

Puzzles to Solve

Puzzles to solve are problems or challenges that require critical thinking and problem-solving skills to find a solution.

Cognitive Miser

A theory suggesting that humans, to save mental energy, prefer to solve problems in the simplest way possible rather than in a more sophisticated but effort-intensive way.