Pearson Edexcel IAL Economics 4.3.2.3a Understanding & calculation of th

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

Exam points

calculate terms of trade using export price index divided by import price index times 100
interpret charts to decide whether export or import prices rose faster over time

[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?

21.0

85.2

117.3

263.6

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4.3.2.3a - Understanding and calculation of the terms of trade question 1