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

question 103

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:

Semifluid Medium

A substance that has properties between solid and liquid states, often used in biological and chemical applications for cultures or reactions.

Chromatin

A complex of DNA and proteins found in the nucleus of cells that condenses to form chromosomes during cell division.

Household Liquid

Any fluid substance commonly found or used within a living residence, such as cleaning solutions or drinks.

Ammonium Hydroxide

A solution of ammonia in water, used as a cleaning agent and in the manufacture of fertilizers.