Question on: JAMB Economics - 1992
The terms of trade of a country is defined as
A
\(\frac{\text{Index of import prices}}{\text{Index of export prices}}\) x 100
B
\(\frac{\text{Index of exportable}}{\text{Index of importable}}\) x 100
C
\(\frac{\text{Index of visible imports}}{\text{Index of visible exports}}\) x 100
D
\(\frac{\text{Index of export prices}}{\text{Index of import prices}}\) x 100
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Correct Option: B
Terms of trade (TOT) refers to the relative price of exports in terms of imports and is defined as the ratio of export prices to import prices.
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