The ratio of the price of exported goods to the price of imported goods (P_x/P_m) is known as the balance of trade.

Name: The ratio of the price of exported goods to the price of imported goods (P x /P m ) is known as the balance of trade.
Brand: Quizplus
Rating: 4.8 (57 reviews)

Question

Quizplus · Accepted Answer

The ratio described is known as the terms of trade, not the balance of trade. The balance of trade refers to the difference in value between a country's imports and exports.

The Ratio of the Price of Exported Goods to the Price