Multiple choice

Who is credited with developing the concept of 'income terms of trade'?

  1. Jacob Viner

  2. G. S. Dorrance

  3. J. S. Mill

  4. F. W. Taussig
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Income terms of trade measures a country's purchasing power from exports, calculated as the ratio of export price index to import price index multiplied by export quantity index. G.S. Dorrance developed this concept as an improvement over the simple net barter terms of trade, which only considered price ratios.

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