The terms of trade is given by the prices
A) paid for all goods imported by the home country.
B) received for all goods exported by the home country.
C) received for exports and paid for imports.
D) of primary products as opposed to manufactured products.

Question

Quizplus · Accepted Answer

The terms of trade refer to the ratio at which a country's exports can be exchanged for imports. It is the price received for exports and paid for imports. Therefore, the correct choice would be C.

The Terms of Trade Is Given by the Prices