In 2000, the U

question 108

Multiple Choice

In 2000, the U.S.terms of trade was one.In 2009 the U.S.export price
Index was 1.15 and the U.S.import price index was 1.18.Which of the
Following statements is the best interpretation of the change in the U.S.
Terms of trade between 2000 and 2009?

• A)In 2009, the United States had to export 2% more in order to obtain the same amount of imports as in 2000.
• B)In 2009, the United States could export 2% less to obtain the same of amount of imports as in 2000.
• C)Prices of U.S.exports rose more rapidly than prices of U.S.imports.
• D)The U.S.terms of trade improved between 2000 and 2009.

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Definitions:

Test Statistic

A value calculated from sample data that is used in a hypothesis test to make a decision about the null hypothesis.

Sample Data

Data collected from a subset of a population, used to make inferences or predictions about the larger group.

Population Variance

A measure of the dispersion or spread of a set of data points in a population, calculated by taking the average of the squared differences from the mean.

Critical Value

A threshold or boundary in hypothesis testing that defines the cutoff between the rejection or non-rejection of the null hypothesis.