The Prebisch­Singer Hypothesis Concludes That

Multiple Choice

The Prebisch­Singer hypothesis concludes that:

A) due to unfair trading practices, labor in developing countries is exploited.
B) developing countries experience a long­run decline in their terms of trade, as the demand for primary products in higher­income countries
Declines relative to their demand for manufactured goods.
C) OPEC has been responsible for a slowdown in the world's standard of living.
D) technology lowers the cost of manufactured products, so developing countries should see an increase in their terms of trade.