Terms Of Trade Flashcards
1
Q
How is ToT measured?
A
Ratio of exports to imports
2
Q
How does ToT “worsen?”
A
Import increases by relatively larger proportion
3
Q
When was the largest sustained boost to the ToT?
A
2001-12
4
Q
What is the effect of an increase in ToT?
A
Require less to purchase a quantity of goods
5
Q
What is the term for a fall in ToT?
A
Unfavourable
6
Q
Commodity currency
A
A currency that largely depends on commodity prices
7
Q
Dutch disease/two speed economy
A
One sector doing well, others are unchanged/deteriorate
8
Q
When was the AUD floated?
A
1983
