Economics · Terms of Trade
Arrange the following logical steps in the correct sequence to determine and interpret a favorable trend in the Commodity (Net Barter) Terms of Trade: 1. Identify the Export Price Index (Px) and the Import Price Index (Pm). 2. Calculate the ratio of the Export Price Index to the Import Price Index. 3. Multiply the calculated ratio by 100 to derive the Commodity Terms of Trade index. 4. Identify a numerical rise in the resulting index over a specific time period. 5. Conclude that the nation can now obtain more imports per unit of its exports, indicating an improvement in economic welfare. Select the correct answer using the code given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 13, 2, 1, 4, 5
- 21, 3, 2, 4, 5
- 32, 1, 3, 5, 4
- 41, 2, 3, 4, 5✓
Correct answer
1, 2, 3, 4, 5
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