Economics Multiple Choice Question – 7 August 2019

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:

1. 0.875
2. 1.143
3. 87.5
4. 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

1. Incorrect calculation: 105/120
2. Incorrect calculation: 120/105
3. Correct: Index of export prices/index of import prices x 100 = 105/120 x 100.
4. Incorrect calculation: 120/105 x 100.

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