The terms of trade measure ?

LDCs often have a comparative advantage in the production of ?

A. primary products

B. intermediate products

C. manufactured products

D. financial services

Output fell sharply in the transition economies because ?

A. banks were unable to function

B. there was little corporate control

C. vital infrastructure was missing

D. All of the above

If goods are exported for less than society’s marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from?

A. an import subsidy

B. a quota

C. comparative advantage

D. an export subsidy

A tariff causes domestic firms to ________ and consumers to?

A. overproduce, under consume

B. Overproduce, overconsume

C. underproduce, under consume

D. underproduce, overconsume

The level of the equilibrium exchange rate offsets international differences in ?

A. comparative advantage

B. absolute advantage

C. opportunity cost

D. relative costs