Terms of Trade - SS3 Economics Past Questions and Answers - page 1
What does the term "terms of trade" refer to?
The ratio between a country's exports and imports
The number of exports a country produces
The cost of shipping goods between countries
The number of imports a country consumes
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What is a favourable terms of trade?
When the prices of exports are higher than the prices of imports
When the prices of exports are lower than the prices of imports
When a country has a trade deficit
When a country's imports are greater than its exports
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How does an unfavourable term of trade affect a country?
It can lead to a decrease in income and standard of living
It can lead to an increase in income and standard of living
It has no effect on a country's economy
It can lead to a decrease in the cost of living
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Why is maintaining favorable terms of trade important for a country?
It leads to economic growth and development
It increases the cost of living
It leads to a decrease in income and standard of living
It has no effect on a country's economy
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Which of the following best describes terms of trade?
The value of a country's exports relative to its imports
The total value of a country's exports
The total value of a country's imports
The number of countries a country trades with
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Define terms of trade in your own words.
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Why is maintaining favourable terms of trade important for a country's economic growth?
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