Economics 9708 · AS & A Level · 6.3

6.3 — practice question

The table gives the average changes in the prices and volumes of exports and imports. Which combination of changes would cause the terms of trade to rise?

  • Aexport prices –10%, export volumes +15%, import prices –15%, import volumes +10%
  • Bexport prices –3%, export volumes +6%, import prices –2%, import volumes +1%
  • Cexport prices +5%, export volumes –5%, import prices +6%, import volumes –1%
  • Dexport prices +10%, export volumes –5%, import prices +12%, import volumes –6%

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