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:

Interference

A condition where two parts intentionally have dimensions that prevent them from fitting together unless deformation occurs, ensuring a tight fit.

Mating Parts

Components designed to fit together in a specific manner to perform a function within an assembly.

Clearance Fit

A type of fit in engineering where there is a deliberate space between two mating parts, allowing freedom of movement.

Interference Fit

A type of fit where parts are designed such that their dimensions cause them to partially deform when assembled, ensuring a very tight fit.