5 Questions
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.
True
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.
True
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.
True
Test your knowledge of international economics with a focus on demand and supply, offer curves, and terms of trade. Explore how equilibrium prices at which trade takes place are determined and how the terms of trade have changed over time.
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