With Other Things Unchanged, a Rise in the Average Price

question 184

Multiple Choice

With other things unchanged, a rise in the average price of imports or a fall in the average price of exports will:

• A) improve the terms of trade.
• B) worsen the terms of trade.
• C) expand the production possibilities frontier.
• D) contract the production possibilities frontier.

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Definitions:

Overeating Carbohydrates

The consumption of carbohydrates in amounts exceeding the body's energy requirements, often leading to weight gain.

Whole Grains

Grains that contain all essential parts and naturally-occurring nutrients of the entire grain seed in their original proportions.

Nutrients

Substances needed for growth, metabolism, and for other body functions; includes vitamins, minerals, carbohydrates, fats, and proteins.

Energy Source

Any substance or system that can be utilized to produce energy or power, including fossil fuels, solar energy, wind energy, and nuclear power.