The world prices of primary products are less likely to decline if
A. the major importers of the primary products impose high tariff barriers on their imports.
B. the production of the primary commodities is increased by a greater proportion than the increase in their demand.
C. the government of the countries that export primary products subsidize the production of these primary products.
D. the exporters of the primary products form international cartels.
Answer: D
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What will be an ideal response?
If the theory behind an economic model fits the data poorly, you would probably want to
A) use the theory to predict what would happen if the economic setting or economic policies change. B) start from scratch with a new model. C) enrich the model with additional assumptions. D) restate the research question.