Multiple choice

Match the following.

 
Group - I Group - II
1. Real Cost Terms of Trade (i) Tu = Tr . u
2. Utility Terms of Trade (ii) Td = Tc . Fx / Fm
3. Double Factoral Terms of Trade (iii) Ty = Tc . Qx
4. Income Terms of Trade (iv) Tr = Ts . Rx

  1. 1 - (i), 2 - (ii), 3 - (iii), 4 - (iv)

  2. 1 - (iii), 2 - (iv), 3 - (ii), 4 - (i)

  3. 1 - (iv), 2 - (iii), 3 - (ii), 4 - (i)

  4. 1 - (iv), 2 - (i), 3 - (ii), 4 - (iii)

  5. 1 - (iv), 2 - (i), 3 - (iii), 4 - (ii)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

These options are correctly matched. Viner developed the real cost terms of trade index. They are expressed as: Tr = Ts . Rx Px = ____ . Fx . Rx Pm Utility terms of trade are expressed as: Tu = Tr . u Px = ___ . Fx . Rx . u Pm  Double factoral terms of trade are expressed as: Fx Td = Tc. ___ Fm Income terms of trade are represented as: Ty = Tc . Qx 

Keep practicing — related questions