The table below shows the price indices for a country’s exports and imports in 2015 and 2016.
What was the country’s terms of trade in 2016?
Select ONE answer:
- 0.875
- 1.143
- 87.5
- 114.3
Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple choice question is suitable for Economics KS5 classes.
The answer is 3
- Incorrect calculation: 105/120
- Incorrect calculation: 120/105
- Correct: Index of export prices/index of import prices x 100 = 105/120 x 100.
- Incorrect calculation: 120/105 x 100.
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