Given {{index of export price}}{{index of import price}} X 100/1 The formular above can be used to determine the

Correct Answer is : tearms of trade

Correct Answer is : tearms of trade

Test Index

JAMB Commerce 2016 Paper

Question : 13

Total: 48

Given

\frac{\text{index of export price}}{\text{index of import price}}

\frac{100}{1}

The formular above can be used to determine the

Solution:

Concept:

The formula measures a country's terms of trade.

Explanation:

Terms of trade compares export prices with import prices.

It is calculated as:

\frac{\text{Index of export prices}}{\text{Index of import prices}} \times 100

A value above 100 indicates favourable terms of trade; below 100 indicates unfavourable terms of trade.

Answer:

C. terms of trade

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