What drives a country's limits to acceptable terms of trade?
A)Their opportunity costs
B)Whether they possess the absolute advantage in the production of a good
C)Both of these statements are true.
D)Neither of these statements is true.

Question

Quizplus · Accepted Answer

A country's limits to acceptable terms of trade are driven by their opportunity costs, as these determine the range within which they can trade beneficially.

What Drives a Country's Limits to Acceptable Terms of Trade