Which of the following terms-of-trade indices incorporate considerations of disutility or sacrifice?
Real-cost terms of trade take account of the disutility or sacrifice involved in producing exports. Utility terms of trade extend this analysis by considering the…
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Which of the following terms-of-trade indices incorporate considerations of disutility or sacrifice?
Answer and explanation
Correct answer D
Real-cost terms of trade take account of the disutility or sacrifice involved in producing exports. Utility terms of trade extend this analysis by considering the desirability of imports relative to goods forgone at home.
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RPSC Assistant Professor (College Education)