International Economics

_____ refers to the rate at which the goods of one country exchange for the goods of another country.

• terms of trade

• balance of payment

• real cost

• quotas

The Concept of reciprocal demand was introduced by Ricardo

• True

• False

Mill's Theory of reciprocal demand was developed with the illustration of two countries

• England and Germany

• Germany and U.S.A

• U.K and U.S.A

Mill's Theory of reciprocal demand was developed with a two commodity (linen and cloth ) model

• True

• False

Mill's Theory of reciprocal demand is a two by two model

• True

• False

The Concept of gross barter terms of trade was introduced by _____

• Joan Robinson

• F.W.Taussig

The real cost terms of trade was developed by Viner

• True

• False

_____ terms of trade is calculated by multiplying the commodity terms of trade index by productivity changes in domestic export industries

• Gross Barter

• Double Factoral

• Single Factoral

pick the factors affecting terms of trade

• Terms of trade

• Tariff and Devaluation

___ terms of trade promote rapid economic development of an underdeveloped country.

• favorable

• unfavorable