Asked by Kåmøgelø Mokwå on Jun 14, 2024
Verified
Assume that Blade Runner specializes in producing in-line skates and Hang Ten specializes in producing surfboards. After trade Blade Runner exports 800 pairs of in-line skates and imports 200 surfboards. The terms of trade
A) are 1:4 in-line skates to surfboards.
B) are 4:1 in-line skates to surfboards.
C) are 1/4:1 in-line skates to surfboards.
D) cannot be determined from this information.
Terms Of Trade
The ratio at which a country can trade domestic products for imported products.
In-line Skates
Skates with all wheels aligned in a single row down the middle, allowing for greater speed and agility than traditional roller skates.
Surfboards
Long, narrow boards used in the sport of surfing to ride waves, traditionally made of wood but now also from various synthetic materials.
- Examine the effects of commerce on country-wide economies and the advantages of focusing on specific sectors.
Verified Answer
MB
Marisa BalzanoJun 20, 2024
Final Answer :
B
Explanation :
The terms of trade are determined by the ratio of goods exchanged. Blade Runner exports 800 pairs of in-line skates and imports 200 surfboards, which simplifies to a 4:1 ratio of in-line skates to surfboards.
Learning Objectives
- Examine the effects of commerce on country-wide economies and the advantages of focusing on specific sectors.