Day: November 11, 2022

In which of the following situations will a country’s terms of trade worsen?

Select ONE answer:

1. The prices of its imports rise by more than the prices of its exports.
2. The total value of external payments rises by more than the total value of external receipts.
3. The value of its imports rises by more than the value of its exports.
4. The volume of its imports rises by more than the volume of its exports.

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

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