Which of the following is an important difference between consumer spending in the developed versus the developing, world?
a. Developing nations produce goods for much less than developed nations, so consumers pay less.
b. When prices are scaled to incomes, there is little difference between consumer spending in the developing and the developed world.
c. Developing nations usually lack an industrial base, so they pay more for imported goods than developed nations do.
d. Developed nations produce goods for much less than developing nations, so consumers pay less
Answer: c
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