Which concept refers to the relative prices of goods a country imports and exports?
A)Balance of payments
B)Capital account
C)Foreign debt
D)Terms of trade

Question

Quizplus · Accepted Answer

Terms of trade refer to the ratio between the prices of exports and imports of a country. It indicates how much import goods a country can get for a unit of its export goods, essentially measuring the relative prices of goods a country trades.

Which Concept Refers to the Relative Prices of Goods a Country