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Economics (AS & A Level) · May / June 2025 · Paper 11 · Question 26

9708The reasons for international trade

Why does the value of a country's terms of trade have no monetary units?

  1. AIt cannot be calculated accurately enough.
  2. BIt includes more than one currency.
  3. CIt is a ratio of two index numbers.
  4. DIt measures change over time.

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Correct answer: C. It is a ratio of two index numbers.

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