Measurement of Terms of Trade - SS3 Economics Past Questions and Answers - page 1
1
How is the terms of the trade index calculated?
View related lesson
A
Index of export prices divided by index of import prices, then multiplied by 100
B
Index of import prices divided by index of export prices, then multiplied by 100
Â
C
Index of export prices multiplied by index of import prices, then divided by 100
D
Index of import prices multiplied by index of export prices, then divided by 100
2
What do high terms of trade index indicate?
View related lesson
A
Favourable terms of trade
B
Unfavourable terms of trade
C
No impact on a country's economy
D
A decrease in the cost of living
3
Why is the measurement of terms of trade important?
View related lesson
A
It helps assess a country's economic performance
B
It determines the number of imports a country can purchase
C
It predicts future changes in a country's exportsÂ
Â
D
It has no impact on a country's economic growth
4
What is the index of export prices?
View related lesson
A
The average price of goods a country exports
B
The total value of goods a country exports
C
The number of countries a country exports to
D
The cost of shipping goods between countries
Â
5
What is the index of import prices?
View related lesson
A
The average price of goods a country imports
B
The total value of goods a country imports
Â
C
The number of countries a country imports from
D
The cost of exporting goods to other countries
6
What is the purpose of measuring terms of trade?
Â
View related lesson
7
How does a high terms of trade index impact a country's economy?
View related lesson
Loading lesson…