Anushka posted an Question
April 19, 2021 • 23:23 pm 30 points
  • UGC NET
  • Economics

Shouldn't answer be 1.. it's given 3

shouldn't answer be 1.. it's given 3...................

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  • Ravindra nath mahto

    Assertion is absolutely right that income terms of trade is an indicator of capacity to import. Because higher the income means higher the ability to pay for imports and vice-versa. But the reason is wrong because income terms of trade is not calculated by multiplying the quantity of imports whereas we multiply the quantity of exports. The logic is simple behind the multiplication of exports instead imports because a country receives income by exporting not importing.

  • Reshma gupta Best Answer

    income terms of trade are multiplication of net barter terms of trade and quantity of the export not import. that's why reason is wrong. only assertion is correct.

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