The terms of trade is given by
A) (Price of exports/price of imports) ? 100.
B) (Price of exports/price of imports) + 100.
C) (Price of exports/price of imports) ÷ 100.
D) (Price of exports/price of imports) × 100.

Question

Quizplus · Accepted Answer

The formula for terms of trade is (Price of exports/price of imports) × 100. This is because the terms of trade is the ratio of export prices to import prices, and expressing it in percentage terms allows for easier comparison between different countries or time periods. Therefore, choice D is the correct answer.

The Terms of Trade Is Given by