In a Two-Good,one-Period Model,an Increase in the Terms of Trade

question 49

Multiple Choice

In a two-good,one-period model,an increase in the terms of trade when Good a is initially imported is caused by

• A) the price of Good a falling relative to Good b.
• B) the price of Good a rising relative to Good b.
• C) the consumption of Good a rising.
• D) the production of Good b falling.
• E) a current account deficit occurring.

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Definitions:

Manufacturers

Entities or individuals involved in the transformation of raw materials or components into finished goods, often utilizing machinery, labor, and efficient production processes.

Americans with Disabilities Act

A civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life.

Industrial Regulation

A set of government rules and guidelines aimed at controlling the activities, standards, and behaviors within specific industries to protect public interests.

Celler-Kefauver Act

A U.S. law passed in 1950 to amend the Clayton Act, aimed at preventing anticompetitive mergers and acquisitions by closing loopholes regarding asset purchases.