CAIE A-Level Economics 6.1.3 Terms of Trade

CAIE A-Level Economics 6.1.3 Terms of Trade
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise calculating export-price over import-price indices, explaining improvements or deteriorations and evaluating effects on real income, inflation, trade volumes and current…

How this is tested

  • calculate export-price index divided by import-price index and multiply the ratio by 100
  • explain an improvement through higher export prices or lower import prices, holding the other index
  • evaluate welfare and current-account effects using PED, trade volumes and import dependence

Question 27

[Maximum number: 1]

The table shows the terms of trade for an economy expressed as an index number for the period 2019 to 2021.

Table for Question 27 — CAIE A-Level Economics

What can be concluded from the table?

A

The quantity of imports rose relative to the quantity of exports.

B

The price of exports rose relative to the price of imports.

C

The price of imports rose relative to the price of exports.

D

The value of exports rose relative to the value of imports.