Assume that, for a certain country in a given year, the index of import prices stands at 102, the index of export prices stands at 106. The terms of trade are (to the nearest whole number)
- 208
-
104
- 54
- 4
The correct answer is: B
Explanation
Terms of trade = \(\frac {\text{Index of export prices}} {\text{Index of import prices}}\) x 100
\(\frac {106}{102}\) x 100
= 103.9
≈ 104