A-LevelEconomicsInternational Trade and GlobalisationMay/June 2018Paper 1 Q241 Mark
Country P exports goods and imports goods. Export prices and import prices are set to an index of 100 in year 1. The table shows corresponding prices indices for years 2 and 3. year 2 year 3 export price index 120 132 import price index 110 121 Which statement is correct?
AIt is not possible to say how the terms of trade changed without further information.
BThe terms of trade improved between years 1 and 2, and improved again between years 2 and 3.
CThe terms of trade improved between years 1 and 2, and then remained unchanged between years 2 and 3.
DThe terms of trade worsened throughout the whole period.
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of international trade and globalisation within the Economicssyllabus. The examiner's mark scheme requires...
📋 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...
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