If the Ratio of Price of Cloth (PC)divided by the Price

question 19

Multiple Choice

If the ratio of price of cloth (PC) divided by the price of food (PF) increases in the international marketplace,then

• A) the terms of trade of cloth exporters will improve.
• B) all countries would be better off.
• C) the terms of trade of food exporters will improve.
• D) the terms of trade of all countries will improve.
• E) the terms of trade of cloth exporters will worsen.

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Definitions:

Transitional Expression

Words or phrases that provide a connection between ideas, sentences, and paragraphs, helping to make communication clear and smooth.

REM Sleep

A phase of sleep characterized by rapid eye movements, low muscle tone, and vivid dreams, playing a crucial role in memory and learning.

Hibernate

A state of inactivity and metabolic depression in animals during winter, allowing survival through periods of reduced food availability.

Cold-blooded

Refers to organisms, such as reptiles and fish, that do not regulate their body temperature internally but rely on external sources.