Which of the following statements is incorrectly describing the ratio of trade at market prices to gross domestic product (the trade-to-GDP)?
Q. Which of the following statements is incorrectly describing the ratio of trade at market prices to gross domestic product (the trade-to-GDP)?
a. If a country has total export of 5 billion dollars, total import of 3 billion dollars and GDP of 40 billion dollars, the country’s trade-to-GDP is 20%.
b. It is used as a measure of the openness of a country to international trade, and so may also be called the trade openness ratio.
c. The trade-to-GDP ratio tends to be low in countries with large economies and large populations.
d. China has one of the lowest trade-to-GDP ratio because of its large economic size and population.
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