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

When there is improvement in a country's terms of trade, it means that the country's
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Exports are cheaper relative to imports
  • B Imports are cheaper relative to exports
  • C Volume of imports has declined
  • D Volume of exports has declined
Correct Answer: Option B
Explanation:
Terms of trade (TOT) represent the ratio between a country's export prices and its import prices. If a country's terms of trade improve, it means that for every unit of exports sold it can buy more units of imported goods.

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