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The terms of trade refer to the ratio at which a country can exchange its exports for imports.
The terms of trade refer to the ratio at which a country can exchange its exports for imports.
True
Offer curves are used to determine the equilibrium price at which trade takes place in international economics.
Offer curves are used to determine the equilibrium price at which trade takes place in international economics.
True
The equilibrium-relative commodity price at which trade will take place can be determined using both partial and general equilibrium analysis.
The equilibrium-relative commodity price at which trade will take place can be determined using both partial and general equilibrium analysis.
True
Partial equilibrium analysis considers the impact of a policy on a single market, holding all other markets constant.
Partial equilibrium analysis considers the impact of a policy on a single market, holding all other markets constant.
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In Figure 4-1, at a relative price greater than P1, Nation 1's excess supply of X gives rise to Nation 1's international supply curve of X.
In Figure 4-1, at a relative price greater than P1, Nation 1's excess supply of X gives rise to Nation 1's international supply curve of X.
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