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Chako Chako
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Posts: 2948
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8 years ago
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 cloth exporters will worsen.
D) the terms of trade of all countries will improve.
E) the terms of trade of food exporters will improve.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
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machukianmachukian
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#1
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8 years ago
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Chako Author
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#2
8 years ago
Correct!
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#3
8 years ago
Don't forget to vote my answer as best Nerd Face
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