Samuelson's example is an analysis of a fall in export
Prices, which _______________ the terms of trade,
And _______________ export volume.Samuelson's
Point is that a country is _______________ in the
Absence of trade.
A)improves; reduces; better off
B)worsens; reduces; better off
C)worsens; reduces; worse off
D)improves; reduces; worse off

Question

Quizplus · Accepted Answer

A fall in export prices worsens the terms of trade and reduces export volume. Samuelson's point is that a country is better off in the absence of trade when the terms of trade worsen.

Samuelson's Example Is an Analysis of a Fall in Export