The Prebisch­Singer Hypothesis Concludes That

question 119

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.

---

Definitions:

Emotional State

Encompasses a person's current feelings and mood, which can affect perception, decision-making, and behavior.

Spillover Effect

The phenomenon where the effects of one event extend to affect other areas or domains, often in an unrelated context.

Emotional Volatility

A state characterized by rapid, frequent, and intense fluctuations in emotional states, affecting a person's behavior and relationships.

James-Lange Theory

A theory of emotion proposing that physical arousal precedes and causes the emotional experience.