A Problem for Developing Countries Is That the Prices of Primary

question 32

Multiple Choice

A problem for developing countries is that the prices of primary products fluctuate more widely than do the prices of finished goods because

• A)crop supply changes very little despite the weather
• B)crop supply fluctuates with the weather
• C)weather never varies
• D)crops go in and out of fashion as new diets are developed
• E)crop demand fluctuates with the weather

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Definitions:

International Trade

The exchange of goods and services between countries, allowing for greater variety and availability of products, economies of scale, and increased efficiency.

Achieve

To successfully reach a desired or intended goal through effort, skill, or courage.

Marginal Cost

The heightened cost involved in the production of one additional product or service unit.

Marginal Benefits

The supplementary benefit or enjoyment a person gets by consuming another unit of a good or service.