Refer to the Information Provided in Table 19

question 88

Multiple Choice

Refer to the information provided in Table 19.1 below to answer the questions that follow.
Table 19.1

-Refer to Table 19.1.For both countries to benefit from trade,the terms of trade must be between ________ bushel(s) of oranges to bushel(s) of bananas.

• A)1:1/2 and 1:4
• B)2:3 and 2:1
• C)1:1 and 1:1/2
• D)1:1 and 1:2.

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Definitions:

Net Exports

The difference between a country's total exports of goods and services and its total imports of goods and services; net exports can be a positive or negative value.

Gross Investment

A company’s total investment in plant, equipment, and inventory. Also, a nation’s plant, equipment, inventory, and residential housing investment.

Depreciation

The process of allocating the cost of a tangible asset over its useful life.

Government Purchases

Expenditures by government entities on goods and services that are consumed in the provision of public services and for public investment.