Given the Following Indexes for Country I in 2012, with 2005

question 6

Essay

Given the following indexes for country I in 2012, with 2005 = 100:
$\begin{array} { l l } \text { price of exports } = 112 & \text { quantity of exports } = 94 \\\text { price of imports } = 108 & \text { quantity of imports } = 102\end{array}$
(a) Calculate country I's net barter or commodity terms of trade for 2012 (round to nearest one decimal place if necessary)..
(b) Calculate country I's income terms of trade for 2012 (round to nearest one decimal place if necessary)..
(c) Explain your differing results for (a) and (b) and briefly explain the significance of each terms-of-trade movement for country I.

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Definitions:

Fundamental Attribution Error

The tendency for observers to underestimate situational influences and overestimate dispositional characteristics when explaining others' behaviors.

Stable Internal Characteristics

Traits or attributes within an individual that are enduring and consistent across different situations and over time.

Situational Attribution

is the process of attributing a person's behavior to external or situational factors, rather than to internal characteristics or dispositions.

Unfair Test

An evaluation or assessment that does not provide all individuals an equal opportunity to demonstrate their abilities, often due to bias or flawed design.