Question

Country A had an index of export prices of 12% over the previous year and an index of import prices of 5% over the previous year. What will be its terms of trade? a) 93.04 b) 107.5 c) 2.4 d) 0.467

Answer 1

b) 107.5 (aprox) hope it helps u plzz mark me brainiest

Answer 2

Answer: the correct is option (c)

Terms of trade is 2.4

Explanation:

Given,

Index of export prices = 12 %

Index of import prices = 5 %

Terms of trade = ?

We know that,

$Terms\ of\ trade = \frac{index\ of\ export\ prices }{index\ of\ import\ prices }$

$Terms\ of\ trade = \frac{12 \%}{5 \%}$

$Terms\ of\ trade = \frac{12}{5}$

Terms of trade = 2.4

Terms of trade is 2.4