WTF??? terms of trade question.. (1 Viewer)

[krnofdrg]

http://www4.boardofstudies.nsw.edu....wer=B&courseID=15110&testQuestionID=266853368

Why isn't it B??

 

[Bobbo1]

yep, i cant see how D can be the answer when its talking about volumes...

 

[themanman]

yep, i cant see how D can be the answer when its talking about volumes...

the correct answer is D

wow i dropped eco and i can still rmember this

TOT = amount of exports required to cover the monetary loss of imports due to currency leaving the country

Exports 110 - Imports 110 (110 export volumes were required to cover the monetary loss of 110 import volumes)
Exports 110 - Imports 112 (the revenue gained from 110 exports has increased meaning that the same volume can now cover the loss of more imports)

pretty easy (dont mean to sound arrogant)

also, the terms of trade didnt worsen, they improved. i think... dont quote me on that 1

 

[krnofdrg]

the correct answer is D

wow i dropped eco and i can still rmember this

TOT = amount of exports required to cover the monetary loss of imports due to currency leaving the country

Exports 110 - Imports 110 (110 export volumes were required to cover the monetary loss of 110 import volumes)
Exports 110 - Imports 112 (the revenue gained from 110 exports has increased meaning that the same volume can now cover the loss of more imports)

pretty easy (dont mean to sound arrogant)

Can you please read the question properly...

Terms of trade is also relative movement of export prices in comparison to import prices..

exports were 100-110. Year 1

110-112 year 2....

I don't see how B is correct...

 

[themanman]

Can you please read the question properly...

Terms of trade is also relative movement of export prices in comparison to import prices..

exports were 100-110. Year 1

110-112 year 2....

I don't see how D is correct......

oh woops they were too

yeah then B should be the answer :3 (luckily i dropped eco)
lol

that now makes me question the validity of the answers provided by the BOS

 

[krnofdrg]

100/110= 90.90

110/112= 98.214....

 

[themanman]

100/110= 90.90

110/112= 98.214....

and...?

 

[krnofdrg]

oh woops they were too

yeah then B should be the answer :3 (luckily i dropped eco)
lol

that now makes me question the validity of the answers provided by the BOS

Oh wait.. terms of trade did not detoriate it actually improved mathematicallly..

D is right....

The higher the value of the terms of trade ratio!! Fewer exports would be required.. (90.90 -> 98.214)...

Terms of trade did not worsen as a result ....


ty guys dw i got it.. I just have to actually calculate not rely on the diagram.

 

[themanman]

Oh wait.. terms of trade did not detoriate it actually improved mathematicallly..

D is right....

The higher the value of the terms of trade ratio!! Fewer exports would be required.. (90.90 -> 98.214)...

Terms of trade did not worsen as a result ....


ty guys dw i got it.. I just have to actually calculate not rely on the diagram.

makes me regret dropping it now :'(