Asymmetric Information & Trade Policies for the Developing Nations Mcqs

Q.  In the Px = export price index, Pm = import price index, Qx = export quantity index,and Qm = import quantity index. Developing countries tend to maintain that their commodity term of trade have declined over the long run suggesting that _________ has declined?

a. Px/Pm
b. Pm/Px
c. (Pm/Px)Qm
d. (Px/Pm)Qx


ANSWER: See Answer
 
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