An economy is involved in the international trade of six main commodities. Using the statistical information in the table below, calculate the terms of trade index (expressed as a ratio of weighted export prices to weighted import prices, rounded to two decimal places).
| Commodity | Price (USD) | Proportion of total trade value |
|---|---|---|
| Exports | ||
| Commodity A | $25 | 30% |
| Commodity B | ,$15 | 50% |
| Commodity C | $8 | 20% |
| Imports | ||
| Commodity X | ,$20 | 15% |
| Commodity Y | $12 | 60% |
| Commodity Z | ,$6 | 25% |
0.70
1.26
1.42
1.31
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.