The Terms of Trade Are

question 4

Multiple Choice

The terms of trade are

• A)the terms negotiated in a trade agreement.
• B)exports plus imports divided by GDP.
• C)the value of the real exchange rate.
• D)taxes plus transaction costs paid on imports.
• E)the ratio of export prices to import prices.

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Definitions:

Fertility

Fertility refers to the natural capability to produce offspring, often measured by the number of births per population segment over a given time period.

Standard Of Living

A level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographical area.

Karl Marx

A 19th-century philosopher, economist, and revolutionary who is most famous for his theories about capitalism and communism.

Thomas Malthus

An English cleric and scholar influential in the fields of political economy and demography, best known for his theory on population growth.