Developing Countries Often Claim That Their "Commodity Terms of Trade

Multiple Choice

Developing countries often claim that their "commodity terms of trade" have fallen over the long run. This means that (with P_x = export price index, P_m = import price index, Q_x = export quantity index, and Q_m = import quantity index) the developing countries think that there has been a decline in their __________.

A) (P_m/P_x) .Q_m
B) P_m/P_x
C) P_x/P_m
D) (P_x/P_m) .Q_x