Assume that, for a certain country in a given year, the index of import prices stands at 102, the index of export prices stands at 106. The terms of trade are (to the nearest whole number)

  • A 208
  • B 104
  • C 54
  • D 4
jamb 2019economics

The correct answer is B. 104

Terms of trade = Index of export pricesIndex of import prices\frac {\text{Index of export prices}} {\text{Index of import prices}} x 100

106102\frac {106}{102} x 100

= 103.9

≈ 104

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