A Terms-Of-Trade Index That Equals 150 Indicates That Compared to the Base

question 75

Multiple Choice

A terms-of-trade index that equals 150 indicates that compared to the base year,

• A) it requires a greater output of domestic goods to obtain the same amount of foreign goods.
• B) it requires a lesser amount of domestic goods to obtain the same amount of foreign goods.
• C) the price of exports has risen from $100 to $150.
• D) the price of imports has risen from $100 to $150.

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Definitions:

Outliers

Outliers are data points that are significantly different from the majority of a data set, often lying far outside the other values.

Variance

A statistic used in statistics to measure how far a set of numbers are spread out from their average value.

Negative Deviations

Differences where observed values fall below the expected or average values in a data set.

Negatively Skewed

A distribution that is skewed to the left, indicating that the tail on the left side is longer or fatter than the right side.