The Terms of Trade Between Two Goods Depend On

question 92

Multiple Choice

The terms of trade between two goods depend on:

• A) Which country has an absolute advantage in the good.
• B) Negotiations by the Federal Reserve.
• C) Each country's domestic opportunity costs.
• D) Which country pays the transportation costs.

---

Definitions:

Negligence

The lack of taking adequate precautions to prevent causing harm or damage to someone else.

Wrongful Nature

The characteristic of an act or behavior deemed improper, illegal, or unjust according to societal or legal standards.

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for the wrongful acts of an employee or agent, when such acts occur within the scope of employment or agency.

Liability Policies

Insurance policies that offer protection against claims resulting from injuries and damage to people and/or property.