Explain the reasons for export pessimism in Latin American countries
What will be an ideal response?
Export pessimism refers to the idea that the relative price of primary commodities will fall over time. Economic theory holds that as incomes rise, people spend a smaller share of their overall income on foodstuffs and other raw-material-based goods such as textiles and apparel, and they spend more on manufactured items. Consequently, the demand for raw materials declines in relation to the demand for manufactured goods.
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A firm seeking to maximize economic profits should produce at the output at which
A) total revenue equals total cost. B) marginal revenue equals marginal cost. C) average revenue equals average cost. D) marginal revenue equals average revenue.
Of all the points on the production possibilities curve, only one point represents an efficient point
a. True b. False Indicate whether the statement is true or false