Developing Countries (Or LDCs) Tend to Have a Ratio of Manufactured

question 4

Multiple Choice

Developing countries (or LDCs) tend to have a ratio of manufactured goods exports to total exports that is __________ than the corresponding ratio for high-income countries, and the LDCs also tend to have a __________ degree of commodity concentration in their exports than do the high-income countries.

• A) higher; higher
• B) higher; lower
• C) lower; higher
• D) lower; lower

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Definitions:

Time Inconsistency

Refers to the situation where a decision-maker's preferences change over time, so that what is preferred at one point in time is inconsistent with what is preferred at another time.

Short-Run Phillips Curve

A graphical representation showing the inverse relationship between the rate of inflation and the rate of unemployment in the short term.

Long-Run Phillips Curve

A graphical representation in economics indicating that in the long run, there is no trade-off between inflation and unemployment, showing a vertical curve at the natural rate of unemployment.

Short-Run Phillips Curve

A concept in economics that shows an inverse relationship between unemployment and inflation in the short term.