Multiple Choice
The Prebisch-Singer hypothesis concludes that:
A) because of unfair trading practices, labor in developing countries is exploited.
B) developing countries experience a long-run decline in their terms of trade, as the demand for primary products in higher-income 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.
Correct Answer:
Verified
Correct Answer:
Verified
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