The Equilibrium Prices and Quantities Established After Trade Are Fully

question 192

Multiple Choice

The equilibrium prices and quantities established after trade are fully determinate if we know:

• A) The location of all countries' indifference curves
• B) The shape of each country's production possibilities curve
• C) The comparative costs of each trading partner
• D) The strength of world supply and demand for each good

---

Definitions:

Payment Schedule

A predetermined plan outlining the specific dates and amounts for payments to be made by one party to another, often used in billing and financial agreements.

Charges

Fee for services rendered.

Double-Entry Bookkeeping System

A bookkeeping method in which every transaction is entered twice, to two separate accounts, with one being a debit and the other a credit, to maintain the balance of the accounting equation.

Single-Entry System

A simple accounting system where each transaction is recorded with a single entry, typically used by small businesses or for personal finances.