What Is Measured by the Ratio of Export Prices to Import

question 99

Multiple Choice

What is measured by the ratio of export prices to import prices?

• A)The terms of trade
• B)The productivity ratio
• C)The trade standards
• D)The gains from trade
• E)The balance of trade

Comprehend the internal rate of return (IRR) and its implications for investment decisions.

Recognize the limitations and potential pitfalls of using the IRR and PI for mutually exclusive investments.

Understand the concept of the crossover rate and its relevance in comparing mutually exclusive projects.

Learn about the arbitrary cutoff numbers used in accounting rate of return (AAR) and payback methods.

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Definitions:

Condorcet

A method of decision making, named after the French mathematician Marquis de Condorcet, that identifies the option that would win a majority of votes in all possible pairings against each of the other options.

Social Choice and Individual Values

A concept in welfare economics and political science that examines how to aggregate individual preferences, values, or welfare to reach collective decisions.

Condorcet Paradox

The failure of majority rule to produce transitive preferences for society.

Condorcet Paradox

The Condorcet Paradox is a concept in voting theory where individual preferences cannot be aggregated into a consistent collective decision without creating contradictions.