If the Index of Export Prices Increases from 120 to 150

question 37

Multiple Choice

If the index of export prices increases from 120 to 150 and the index of import prices increases from 100 to 125, it may be said that

• A)there is insufficient information to calculate the terms of trade.
• B)there has been no change in the terms of trade.
• C)the terms of trade have improved.
• D)the terms of trade have improved by 10 percent.
• E)the terms of trade have deteriorated.

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Definitions:

Capital Expenditures

Capital employed by a corporation to purchase or enhance tangible assets like real estate, manufacturing facilities, or machinery.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Balance Sheet Expenditures

Balance sheet expenditures refer to the costs or expenses that are capitalized on the balance sheet rather than being expensed on the income statement, affecting assets and liabilities.

Plant Assets

Long-term tangible assets used in the operation of a business that are not intended for resale, such as machinery and buildings.