In a Two-Country, Two-Good Model, the

question 71

Multiple Choice

In a two-country, two-good model, the

• A) exports of one country must equal the imports of the other country.
• B) exports of one country can exceed the imports of the other country.
• C) exports of one country can be less than the imports of the other country.
• D) terms of trade always occur halfway between the two pretrade equilibrium prices.

---

Definitions:

Ancillary Farm

A facility or operation that supports the main farming business by providing additional, usually related, services or products.

Innocent Misrepresentation

A false statement made without knowledge of its falsehood, but without intention to deceive, often leading to an altered contract or agreement.

Unilateral Mistake

A contract law concept where one party is mistaken about a basic assumption on which a contract is based, but the other party is not.

Fraudulent Misrepresentation

A false statement made knowingly or recklessly with the intent to deceive, resulting in harm to the victim.