You are a restaurant owner buying vegetables from a local farmer. You recently found out that another one of the farmer's clients, a competing restaurant has shut down, what would that do to your bargaining power?

What are terms of trade?

What will be an ideal response?

The long-run trends of relative prices of primary products suggest that the countries that are dependent on the export of primary products are most likely to

A. slowly catch up with the average per capita income in the industrialized countries. B. experience an increase in their growth rates. C. be able to import more from abroad. D. experience deterioration in their terms of trade.