The table shows the average price of exports and imports. [Table 27.1] Which combination of changes in export prices and import prices could result in a country's terms of trade increasing from 100 to 110?
✓ Correct Answer
The correct answer is D: the average price of exports: rises by 10%, the average price of imports: remains unchanged
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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