A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2011 · Q211 Mark

The table shows four combinations of price changes which may affect a country's terms of trade. Which combination of price changes must cause an improvement in the country's terms of trade? [Table with columns 'average price of exports' and 'average price of imports']

Afalls falls

Bfalls rises

Crises falls

Drises rises

✓ Correct answer

C: rises falls

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2011 Paper 1 Variant 2, question 21.

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