A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2023 · Q181 Mark

What must be the result for a country of a rise in its export prices relative to its import prices?

Adeficit in its trade in goods

Ban improvement in its terms of trade

Can increase in its inflation rate

Drise in its exchange rate

✓ Correct answer

B: an improvement in its terms of trade

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2023 Paper 1 Variant 2, question 18.

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