Developing countries that concentrate production in agricultural products or raw materials may face a secular decline in their international terms of trade due to
A) sluggish demand for these products in developed countries.
B) large increases in the supplies of these products on world markets due to export expansion policies.
C) inelastic demand for these products in developed countries.
D) All of the above.
D
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Which of the following is NOT a characteristic of the market structure for monopolistic competition?
A) Firms are free to enter and exit. B) Firms are price takers. C) Firms compete on product quality, price, and marketing. D) There are a large number of firms.
The substitution effect explains why there is an inverse relationship between the price of a product and the quantity of the product demanded
Indicate whether the statement is true or false
When the interest rate rises, saving becomes ______ rewarding and borrowing becomes ______ costly.
A. less; less B. less; more C. more; less D. more; more
If the cross-price elasticity of demand between two goods is -2.2, then the
a. two goods are substitutes b. two goods are complements c. income elasticity of demand must be between 0 and 1.0 d. goods are both normal goods e. goods are both inferior goods