Author Question: The terms of trade is defined as: a. the quantity of inputs sacrificed to produce each unit of a ... (Read 17 times)

Pea0909berry · **on:** Jun 30, 2018

The terms of trade is defined as:
a. the quantity of inputs sacrificed to produce each unit of a good.
b. the quantity of one good that is exchanged for a quantity of another good.
c. the ratio of the total cost of production of individual traders.
d. the marginal cost of producing one good as a percentage of the marginal cost of another good.
e. the ratio of total exports of a nation to its total production.

Question 2

In a competitive market,
a. demand will always reflect all spillover costs.
b. demand will always reflect all spillover benefits.
c. supply will always reflect all spillover costs.
d. none of the above are true.