What Is the Major Underlying Assumption of the Core-Periphery Model

question 90

Multiple Choice

What is the major underlying assumption of the core-periphery model?

• A) that the wealth of the developed core will eventually diffuse to the less developed periphery
• B) that the different levels of development between the core and the periphery are caused by the relative levels of natural resources in each area
• C) that the less developed periphery will eventually revolt against the wealthier core
• D) that the developed core achieved its wealth primarily by taking advantage of the southern periphery, through either colonialism or imperialism
• E) that the core and periphery will work together to eliminate uneven development

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Definitions:

Optimal Output

The level of production at which a firm maximizes its profits, determined by equating marginal cost and marginal revenue.

Market Price

The current market valuation at which services or products are exchanged.

Minimum Price

A set floor on the price at which a good or service can be sold, often used to ensure fair compensation for producers or to avoid market collapse.

Short Run

A period in economics during which at least one input, such as plant size or capital equipment, is fixed and cannot be changed.