The commodity terms of trade measures
A) The rate at which exports exchange for imports
B) The influence trade has on productivity levels
C) The effect on income of the trading nation
D) The improvement in a nation's welfare

Question

Quizplus · Accepted Answer

The commodity terms of trade measure the rate at which a country's exports exchange for imports. It reflects the relative prices of a country's exports and imports and can have a significant impact on a country's economic performance.

The Commodity Terms of Trade Measures