Which of the Following Is Likely to Improve a Country's

question 60

Multiple Choice

Which of the following is likely to improve a country's terms of trade?

• A) The price of its imports rises relative to the price of its exports.
• B) Its comparative advantage in the production of a good reduces.
• C) The demand for its exports rises.
• D) The cost of production of domestic goods rises.

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Definitions:

Discouraged Worker

An individual who is not actively seeking employment due to a belief that no available jobs suit their skills or experience.

Job Search

The act of looking for employment, due to unemployment or dissatisfaction with a current position.

Contingent Worker

An employee who does not have a long-term employment agreement, often hired for temporary assignments.

Business Cycles

The natural rise and fall of economic growth that occurs over time, consisting of periods of expansion (growth) and contraction (recession) in an economy.