1471EconomicsMedium
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?
APm/Px
B(Px/Pm)Qx
CPx/Pm
D(Pm/Px)Qm
Correct answer
C. Px/Pm
Explanation
The correct answer is Px/Pm.