A Term-Of-Trade Index That Equals 90 Indicates That Compared to the Base

question 79

Multiple Choice

A term-of-trade index that equals 90 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 fallen from $100 to $90.
• D) the price of imports has fallen from $100 to $90.

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Definitions:

Radical Expression

An expression that includes a square root, cube root, or higher root symbol.

Evaluate

To calculate the numerical value of; to determine the significance, worth, or condition of usually by careful appraisal and study.

Calculator

An electronic or mechanical device used to perform mathematical calculations, ranging from basic operations to complex functions.

Rational Exponents

Fractional exponents, with the numerator indicating the exponentiation level and the denominator designating the root level of the primary number.