Terms of Trade - SS3 Economics Past Questions and Answers - page 1
What does the term "terms of trade" refer to?
The ratio between a country's exports and imports
The number of exports a country produces
The cost of shipping goods between countries
The number of imports a country consumes
What is a favourable terms of trade?
When the prices of exports are higher than the prices of imports
When the prices of exports are lower than the prices of imports
When a country has a trade deficit
When a country's imports are greater than its exports
How does an unfavourable term of trade affect a country?
It can lead to a decrease in income and standard of living
It can lead to an increase in income and standard of living
It has no effect on a country's economy
It can lead to a decrease in the cost of living
Why is maintaining favorable terms of trade important for a country?
It leads to economic growth and development
It increases the cost of living
It leads to a decrease in income and standard of living
It has no effect on a country's economy
Which of the following best describes terms of trade?
The value of a country's exports relative to its imports
The total value of a country's exports
The total value of a country's imports
The number of countries a country trades with
Define terms of trade in your own words.
Terms of trade refer to the ratio between the price of a country's exports and the price of its imports.
Why is maintaining favourable terms of trade important for a country's economic growth?
Maintaining favourable terms of trade is important for a country's economic growth because it leads to an increase in the country's income and standard of living, which supports development and progress.