Which of the Following Is True, According to the Prebisch-Singer

question 90

Multiple Choice

Which of the following is true, according to the Prebisch-Singer hypothesis?

• A) Trade surpluses help reduce the price volatility of industrial goods.
• B) Commodity prices are directly proportionate to industrial output.
• C) Industrial goods do not move as quickly when commodity prices are volatile.
• D) Commodity prices earn less over time than industrial goods prices.
• E) Industrial goods prices are more volatile than commodity prices.

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Definitions:

Indifference Map

A collection of indifference curves that graphically represent a consumer's preferences across different combinations of two goods.

Space

The infinite extension of the three-dimensional region in which all matter exists.

Acceleration

in physics, refers to the rate of change of velocity of an object with respect to time.

Utility

A measure of satisfaction or pleasure that a consumer derives from consuming goods and services.