EconomicsInternational tradeJAMB
A country's index of export prices is 120 and its index of import prices is 100. Its terms of trade are
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Answer: A. 120 (favourable)
Terms of trade = export price index ÷ import price index × 100 = 120.
An AdmitMe practice question, written for the JAMB syllabus. Not an official past question.