The concept of terms of trade used in offer curve technique is termed as
Gross barter terms of trade express the ratio of physical quantities of imports to exports, which are the quantities plotted directly on the axes of Marshall-Edgeworth offer…
Choose your answer
The concept of terms of trade used in offer curve technique is termed as
Answer and explanation
Correct answer A
Gross barter terms of trade express the ratio of physical quantities of imports to exports, which are the quantities plotted directly on the axes of Marshall-Edgeworth offer curves. Income, single factoral, and double factoral terms of trade adjust price indices by export volume or factor productivity indices rather than representing the pure barter exchange quantities of offer curves.
Practice for these exams
-
Gujarat SET (GSET)