A-LevelEconomicsInternational economic issues9708/12 · May/June 2020 · Q251 Mark

Why does the value of a country's terms of trade have no monetary units?

AIt cannot be calculated accurately enough.

BIt includes more than one currency.

CIt is a ratio of two index numbers.

DIt measures change over time.

✓ Correct answer

C: It is a ratio of two index numbers.

Oracle Prep sorts past-paper questions by topic, so you can drill International economic issues and see which topics are most likely to come up next.

Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2020 Paper 1 Variant 2, question 25.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

A country has a fixed exchange rate. What is likely to result in a deterioration in its balance of payments?

At present, one unit of a country's currency exchanges for US1.2. The country aims to set its exchange rate equal to …

The US President signed a trade agreement which allowed more duty-free access to the US market for Latin American and…

The table shows substitution and income effects for a normal good and for an inferior good as the price of the good c…

A government imposes a $10 tax on each unit produced of a product. How will this affect the firm? A Its average cost …

According to oligopoly theory, what is not likely to characterise the behaviour of firms in the industry? A matching …