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:

Schedule E

Schedule E is a form used for tax filing that reports supplemental income and loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests.

Schedule D

A form used with the U.S. federal income tax return to report capital gains and losses from the sale, exchange, or disposition of capital assets.

Mortgage Interest

The interest charged on a loan used to purchase a residence, which can be deductible for taxpayers who itemize deductions on their income tax returns.

Property Taxes

Taxes assessed on real estate by local government, based on the property's assessed value.