Whichof the Following Is Used to Determine the Terms of Trade

question 119

Multiple Choice

Which.of the following is used to determine the terms of trade?

• A) Absolute costs.
• B) Opportunity costs.
• C) Export ratio.
• D) Per capita GDP.

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Definitions:

Total Revenue

The total amount of money received by a firm from sales of its products or services, before any expenses are subtracted.

Variable Costs

Costs that vary directly with the level of production or output, such as raw materials and labor expenses.

Short Run

In economics, a period during which at least one factor of production is fixed and cannot be changed, limiting adjustments to changes in demand or technology.

Average Total Cost

The total cost of production (fixed and variable costs) divided by the number of units produced, indicating the cost per unit of output.