Several Economists Have Hypothesized That the Terms of Trade for

question 120

Multiple Choice

Several economists have hypothesized that the terms of trade for
Developing countries will decline over time.Which of the following might
Be a cause of this decline?

• A)Technological progress in manufactured goods has caused their prices to fall.
• B)Some developing countries are able to keep the price of their exports high by restricting supplies on the world market.
• C)Increased demand for developing country exports has caused prices of developing country exports to rise.
• D)The demand for primary product exports from developing countries has not risen as fast as the demand for manufactured exports of
• Industrialized countries.

Understand the impact of business transactions on the financial statements.

Identify account types and their normal balances.

Calculate financial ratios and understand their implications.

Record transactions in journals and post them to the general ledger.

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Definitions:

Average Total Cost

The sum of average fixed costs and average variable costs, divided by the total quantity of output, reflecting the per-unit cost of production including all expenses.

Marginal Cost

The hike in aggregate cost linked with the fabrication of one extra unit of a product or service.

Marginal Revenue

The additional income received from selling one more unit of a good or service, critical in determining optimal production levels.

Average Variable Cost

The total variable cost divided by the quantity of output produced, indicating the variable cost of producing each unit.