Arrange in ascending order the values of income terms of trade at the quantity index 0.80 and based on…
Income terms of trade equal commodity terms of trade multiplied by the export quantity index. Multiplying the four commodity indices by 0.80 gives 72, 88, 64 and 96…
Choose your answer
Arrange in ascending order the values of income terms of trade at the quantity index 0.80 and based on the following values of commodity terms of trade:
a) 90
b) 110
c) 80
d) 120
Answer and explanation
Correct answer D
Income terms of trade equal commodity terms of trade multiplied by the export quantity index. Multiplying the four commodity indices by 0.80 gives 72, 88, 64 and 96 respectively. The ascending order is 64, 72, 88 and 96.
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Telangana SET (TG SET)