A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2017 · Q241 Mark

Which formula is used to calculate a country's terms of trade?

Aindex of export prices – index of import prices

Bindex of import prices – index of export prices

C(index of export prices / index of import prices) × 100

D(index of import prices / index of export prices) × 100

✓ Correct answer

C: (index of export prices / index of import prices) × 100

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2017 Paper 1 Variant 2, question 24.

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