If the Terms of Trade Between Any Two Countries Lie

question 123

Multiple Choice

If the terms of trade between any two countries lie somewhere between their respective opportunity costs,then the effects of trade will include

• A)Consumption outside the production possibilities curve for both countries.
• B)Less output for both countries.
• C)Less interdependence between the economies of the two countries.
• D)An expansion of the production possibilities for both countries.

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Definitions:

Compulsion

An irresistible urge to perform an irrational or unnecessary act or behavior repeatedly.

Obsession

A persistent, intrusive, and unwanted thought or impulse that causes significant distress or anxiety.

Delusion

A false belief, not generally shared by others in the culture.

Phobia

A persistent, irrational fear of some specific object, situation, or activity that poses little or no real danger.