A-LevelEconomicsInternational economic issues9708/12 · Feb/Mar 2022 · Q251 Mark

The prices of a country's exports rise by 5% while the prices of its imports fall by 5%. What will definitely improve in the country as a result of these changes?

Abalance of trade

Bcurrent account balance

Cexchange rate

Dterms of trade

✓ Correct answer

D: terms of trade

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Feb/Mar 2022 Paper 1 Variant 2, question 25.

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