Which of the following terms of trade takes into account the productivity changes both in the domestic…
Double Factoral Terms of Trade adjust commodity terms of trade for productivity changes in both the domestic export sector and the foreign sector producing imports. Single…
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Which of the following terms of trade takes into account the productivity changes both in the domestic export sector and foreign export sector producing the country's imports ?
Answer and explanation
Correct answer C
Double Factoral Terms of Trade adjust commodity terms of trade for productivity changes in both the domestic export sector and the foreign sector producing imports. Single factoral terms of trade adjust for productivity in the domestic export sector alone.
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Madhya Pradesh SET (MP SET)