(a)[8]
Explain what could lead to an improvement in a country’s terms of trade.
(b)[12]
Discuss whether a country ought to be more worried about a fall in its terms of trade or a fall in its domestic price level.
Economics 9708 · AS & A Level · 6.3
6.3 — practice question
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Simple definition of terms of trade (the ratio of export price index to import price index)” …
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