a Define 'terms of trade'. b What is the formula for the terms of trade index? c From the table below, calculate the terms of trade for each year. d In which years did the terms of trade improve? e What does an improvement indicate? Year Export price index Import price index 2005 100 100 2006 120 105 2007 105 110 2008 107 110 2.

a Define 'terms of trade'. b What is the formula for the terms of trade index? c From the table below, calculate the terms of trade for each year. d In which years did the terms of trade improve? e What does an improvement indicate? Year Export price index Import price index 2005 100 100 2006 120 105 2007 105 110 2008 107 110 2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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