Suppose That the Following Table Gives Export and Import Price

question 10

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Suppose that the following table gives export and import price indexes for Zimbabwe in 1990, 2000, and 2014. (The base year is 1990, so all values are 100 in that year.)

I. How did Zimbabwe's terms of trade change between 1990 and 2000? Between 2000 and 2014? Between 1990 and 2014?
II. Do these changes represent deterioration or improvement in Zimbabwe's terms of trade?
III. What are the implications of a terms-of-trade deterioration for the Zimbabwean economy?

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Malnourished

A condition resulting from insufficient intake of nutrients.

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The act of carrying out a plan, order, or decision; in legal terms, it often refers to the carrying out of a death penalty against a person legally condemned to death.

Socialization

The process by which individuals learn and adopt the norms, values, and behaviors appropriate to their society or social group.