Which of the following could explain why the terms of trade of developing countries might deteriorate over time?
A) Developing country exports consist mainly of manufactured goods.
B) Developing country exports consist mainly of primary products.
C) Commodity export prices are determined in highly competitive markets.
D) Commodity export prices are solely determined by developing countries.
E) Developing country exports are too diverse.
C
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Regulating the amount of money in the United States is one of the most important responsibilities of the
A) State Department. B) state governments. C) Treasury Department. D) Federal Reserve. E) U.S. Mint.
The more elastic the demand for a good, the
A) less a sales tax lowers the price paid by buyers. B) more a sales tax lowers the price paid by buyers. C) less a sales tax raises the price paid by buyers. D) more a sales tax raises the price paid by buyers.