If the price Index of export is 140% and import is 200%, what is

The question is cut off, but the numbers tell us what it is asking. With an export price index of 140 and an import price index of 200, the standard economics calculation is the terms of trade.

Concept

Commodity (net barter) terms of trade = (Index of export prices ÷ Index of import prices) × 100

It shows how many units of imports a country can buy with a given quantity of its exports. A figure above 100 is favourable, and one below 100 is unfavourable.

Solution

Terms of trade = (140 ÷ 200) × 100

= 0.7 × 100

= 70

This matches option B. Since 70 is below 100, the terms of trade are unfavourable. Import prices have risen faster than export prices, so the country can buy fewer imports with the same exports.

Checking the other options

• A (60) is the difference 200 − 140, which is not the formula.
• C (100) would mean export and import prices are equal.
• D (140) is just the export index.
• E (280) comes from multiplying 140 × 200 ÷ 100, which is meaningless here.

Note that the question text is incomplete, so I am assuming it asks for the terms of trade, and the numbers fit that perfectly.

Exam tip: Remember "X over M": Exports on top, Imports at the bottom, times 100. If the question asks for terms of trade, always put exports in the numerator.