Home » Past Questions » Economics » The terms of trade of a country is defined as

The terms of trade of a country is defined as


Question

The terms of trade of a country is defined as

Options

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

The correct answer is B.

Explanation:

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.

More Past Questions:


Dicussion (1)