Developing Countries Have Often Argued That Their Terms of Trade

question 80

Multiple Choice

Developing countries have often argued that their terms of trade have worsened because

• A) their import prices have declined relative to their export prices.
• B) their import prices have risen relative to their export prices.
• C) their import prices and export prices have increased.
• D) their import prices and export prices have decreased.

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Definitions:

Expensive

Having a high price or cost, typically in relation to value or to the financial means of the buyer.

Cocaine

A powerful and illegal stimulant drug derived from the leaves of the coca plant.

Illegal Drugs

Substances whose production, sale, or possession is prohibited by law due to their potential effects on health and society.

Effect

The result or outcome of a cause, influencing factors or actions that lead to a change or consequence.