Terms of Trade - SS3 Economics Past Questions and Answers - page 1
1
What does the term "terms of trade" refer to?
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A
The ratio between a country's exports and imports
B
The number of exports a country produces
C
The cost of shipping goods between countries
D
The number of imports a country consumes
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2
What is a favourable terms of trade?
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A
When the prices of exports are higher than the prices of imports
B
When the prices of exports are lower than the prices of imports
C
When a country has a trade deficit
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D
When a country's imports are greater than its exports
3
How does an unfavourable term of trade affect a country?
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A
It can lead to a decrease in income and standard of living
B
It can lead to an increase in income and standard of living
C
It has no effect on a country's economy
D
It can lead to a decrease in the cost of living
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4
Why is maintaining favorable terms of trade important for a country?
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A
It leads to economic growth and development
B
It increases the cost of living
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C
It leads to a decrease in income and standard of living
D
It has no effect on a country's economy
5
Which of the following best describes terms of trade?
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A
The value of a country's exports relative to its imports
Â
B
The total value of a country's exports
C
The total value of a country's imports
D
The number of countries a country trades with
7
Why is maintaining favourable terms of trade important for a country's economic growth?
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