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Edexcel A-Level Economics A2 4.3.2 3a Understanding and Calculation of the Terms of Trade Questions

Practise calculating terms of trade from export and import price indices, then interpreting what index movements show about trade prices.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
A2

Exam points

  • calculate terms of trade as the export price index divided by the import price index multiplied by 100
  • convert export and import percentage changes into base-year indices before calculating terms of trade
  • interpret a terms-of-trade chart by comparing relative changes in export and import prices

Edexcel A-Level Economics A2 4.3.2 3a Understanding and Calculation of the Terms of Trade Questions question 1

[Maximum number: 1]

In 2021 Tanzania's index of export prices was 142.3 and its index of import prices was 121.3.

Which one of the following was Tanzania's terms of trade in 2021?

A

21.0

B

85.2

C

117.3

D

263.6

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