The implication of Prebisch-Singer Hypothesis is: a) Raw materials and labour intensive goods are exported by the developing countries b) That because the price elasticity of demand for primary goods is relatively inelastic, it is pointless for developing countries to seek to export these. c) That because the income elasticity of demand for primary goods is inelastic, over time there will be a decline in primary commodity prices and therefore the incomes derived from primary goods. d) Trade will always be mutually beneficial between a developed and a developing country as long as they both seek to exploit their comparative advantages.

The implication of Prebisch-Singer Hypothesis is: a) Raw materials and labour intensive goods are exported by the developing countries b) That because the price elasticity of demand for primary goods is relatively inelastic, it is pointless for developing countries to seek to export these. c) That because the income elasticity of demand for primary goods is inelastic, over time there will be a decline in primary commodity prices and therefore the incomes derived from primary goods. d) Trade will always be mutually beneficial between a developed and a developing country as long as they both seek to exploit their comparative advantages.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

In the light of fundamentals of supply-side economics and demand-side economics highlight the importance of each school of thought under these two categories in achieving the goal of economic growth. Could there be any consensus among the alternative views? Your answer must be very specific to statement of question.
Is the rational actor model the best way to understand foreign policy decision-making? Define the model, indicate why it is used, and define any other relevant concepts. Raise an objection to the model. Reply to your objection, or raise a second objection. In your answer, be sure to define “rationality” and discuss important (and relevant) concepts as they relate to the Russian decision to invade Ukraine. Approximately 500- 700 words.
The Heckscher-Ohlin model predicts that trade in goods leads to convergence in prices of factors between different countries. True False
. Ricardian Model. Consider two countries: A and B. Labour is the only factor of production for goods X and Y. Consider the following matrix of unit labour requirements. X Y Labor Endowments Country A aLx = 8 aLy = 4 240 Country B aLx* = 6 aLy* = 2 120 Which country has an absolute advantage in producing good X? Good Y? Which country has comparative advantage in producing good X? What is the autarky relative price of good X for country A? For country B? Draw the world relative supply curve RS for good X. Label all the axes (relative price of good X on the vertical axis and world output of x relative to y on the horizontal axis) and the relevant points. Suppose that the world relative demand RD for good X is given by: (Px/Py) = 7 – 9 * ( ( Qx +Q*x) / (Qy + Q*y) ). With free trade: (i) What will be the equilibrium world relative price of good X be equal to? (ii) Calculate the equilibrium wage rate w in A relative to that…
Please assist in answering these questions. The answers do not have to be explained. I will not buy my coffee from “XYZ” Company because of their use of children in production. This consumerism is called b. Company-based purchasing c. Fully screened approach d. Positive Buying The dimensions of globalization are a. Social, environmental, economic, and political b. Cultural, environmental, legal, and economic c. Political, legal, social, and economic Consumerism __________________ Question 11Answer b. posits that it is economically desirable to increase consumption of goods. c. provides that products manufactured are safe for consumers d. is the theory that posits consumers are more important than employees. Which of the following is not a tenet of Corporate Social Responsibility? b. Philanthropic responsibility c. Ethical Responsibility d. Consult with the stakeholders Which model of the BGS relationship assumes that…
Do the migration trends, unemployment trends and rural-urban income ratio trends behave in the way you would expect based on the Harris-Todaro model? Explain.
Specifically, this insert begins with the conjecture that at this juncture, opinions differ on the future of IB and globalization, but that three scenarios predominate, specifically: Further globalization is inevitable. IB will grow primarily along regional rather than global lines. Powerful forces opposing further globalization and IB will slow their growth. Those anticipating slowing globalization would likely point to all of the following trends except for ________. A) Antiglobalization interests have been successful in electing parties that oppose freer movement of trade or people. B) Technological, transportation, and communication advances will decline in the near future. C) Major countries have either ignored certain international treaties or have refused to sign them. D) The growing split between those who succeed in a global environment and those who do not will foster greater antiglobalization sentiments.
The Melitz (2003) model can account for positive selection of firms into export. True False
The Ricardian model predicts that the market prices for goods with trade cannot be outside the range of the market prices in autarky. True False
A trade policy analyst is planning to assess the relationship between Foreign Direct Investment (FDI) and exports using a panel data of 20 countries over a period of 15 years. Use data from the World Development Indicators for a particular group of countries to determine the nature of the association between the two variables. Write brief notes on the following a) Explain the difference between cross section and panel data. b) Define the variables included in the econometric models and explain the rationale behind the inclusion of each c) Estimate the relationship between foreign direct investment and exports by pooling all the observations.Discuss the limitations of this technique d) Estimate the same relationship in (b) using the fixed effects and random effects model. Interpret your findings in line with the existing literature as to whether FDI and exports are substitutes or complements e) Which model in (c) is more appropriate? Support your answer with the relevant test. f)…
The gravity model implies that lower distance between two countries is associated to more trade between and higher tax revenue in both countries more trade between and higher welfare in both countries more trade between the countries and higher welfare in at least one of the countries None of the above.
This is not a writing assignment, this is a multiple-choice question Tariffs are taxes on imported items. The impact of tariffs can be variable. Which of the below statements is most likely to be INCORRECT for tariffs? Group of answer choices The government may gain temporarily from the taxes collected through the tariffs on imports. The burden of the tariff is invariably borne by foreign imports. Tariffs can lead to retaliation, and eventually, trade wars. Tariffs drive up the cost of imported resources and consumer goods and thus end up hurting both domestic producers and consumers. Tariffs help producers threatened by foreign competition and may keep such businesses alive, no matter how inefficient they may be.