An economy is involved in the international trade of seven main goods. Using the statistical information in the table below, calculate the terms of trade index (expressed as a ratio of export to import prices).
| Good | Price | Proportion of total trade value |
|---|---|---|
| Exports | ||
| W | €18 | 20% |
| X | €12 | 30% |
| Y | €5 | 40% |
| Z | €1 | 10% |
| Imports | ||
| P | €10 | 20% |
| Q | €4 | 50% |
| R | €2 | 30% |
0.490.490.49
1.691.691.69
2.022.022.02
2.252.252.25
14 exam-style questions on OCR A Level Economics International trade. Each one has a worked solution and a mark scheme showing where the marks go.