The Trade or Elasticities Approach Stresses the Role of Trade

question 24

True/False

The trade or elasticities approach stresses the role of trade or the flow of goods and services in the determination of exchange rates.

---

Definitions:

Export Supply Curve

A graphical representation showing how the quantity of goods a country exports changes in response to changes in the price of those goods.

Domestic Opportunity Cost

The cost of forgoing the best alternative use of resources within a country.

Producing

The act of creating goods or services through the combination of labor, materials, and technology.