"The Equilibrium Relative Commodity Price at Which Trade Takes Place

question 49

Multiple Choice

"The equilibrium relative commodity price at which trade takes place is determined by the conditions of demand and supply for each commodity in both nations.Other things being equal, the nation with the more intense demand for the other nation's exported good will gain less from trade than the nation with the less intense demand." This statement was first proposed by

• A) Alfred Marshall with offer curve analysis.
• B) John Stuart Mill with the theory of reciprocal demand.
• C) Adam Smith with the theory of absolute advantage.
• D) David Ricardo with the theory of comparative advantage.

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Definitions:

Hypothalamus

A small region of the brain that plays a crucial role in many important functions, including releasing hormones and regulating body temperature.

Thalamus

A part of the brain that serves as a major relay station for sensory information, excluding smell, transmitting it to the appropriate cortical areas.

Cerebellum

A part of the brain located at the back of the skull which is responsible for coordinating voluntary movements and maintaining balance, posture, and equilibrium.

Biological Clock

An internal timing mechanism in organisms that controls the cycle of daily activities, such as sleep and wakefulness, based on a roughly 24-hour period.