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JAMB Economics 1986 Question 44

Question 44

International Trade

The terms of trade is often measured by the ratio of the index of export prices

  1. A.divided by the index of import prices multiplied by 100
  2. B.multiplied by the index of import prices
  3. C.plus the index of import prices multiplied by 100
  4. D.minus the index of import prices.
Show the answer and explanation

Answer: A (divided by the index of import prices multiplied by 100)

Explanation

Terms of trade = (index of export prices ÷ index of import prices) × 100.