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WAEC Economics 2012 Objective — Question 46

Question 46 of 49 from the West African Examinations Council (WAEC) Economics 2012 Objective paper, with the correct answer and a full explanation.

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When there is improvement in a country's terms of trade, it means that the country's

  • A. exports are cheaper relative to imports
  • B. imports are cheaper relative to exportsCorrect
  • C. volume of imports has declined
  • D. volume of exports has declined

Explanation

Improvement in terms of trade is expressed by the rate at which export pass for import which us otherwise known as term of trade.

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