Which concept of the terms of trade attempts to capture productivity in export and import competing…
Double factoral terms of trade adjust the commodity price ratio for relative productivity in the production of exports and imports. Net barter terms of trade use the price…
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Which concept of the terms of trade attempts to capture productivity in export and import competing sectors of a country ?
Answer and explanation
Correct answer D
Double factoral terms of trade adjust the commodity price ratio for relative productivity in the production of exports and imports. Net barter terms of trade use the price ratio alone, while income terms of trade also incorporate export volume.
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Maharashtra and Goa SET (MH SET)