The term of trade refers to ____________.

Correct option is D

The correct answer is (d) the ratio between export prices and import prices.
 The term "terms of trade" refers to the ratio between the prices at which a country sells its exports and the prices paid for its imports.
 It is an important indicator of the economic health of a country, reflecting the relative value of its exports compared to its imports.
 An improvement in the terms of trade means that a country can buy more imports for any given level of exports, indicating stronger economic power and vice versa.
Information Booster:
 The excess of import expenditures over export earnings refers to a trade deficit, not the terms of trade.
 Trade agreements are treaties between countries regarding trade policies, not terms of trade.
 The terms and conditions on which a country is offered a loan refer to loan terms, not terms of trade.