LDCs are reluctant to pursue development through the export of primary products because of ____ and _____ ?
Correct answer: D. The downward trend in commodity prices the volatility of primary products real prices
- A. The upward trend in commodity prices the stability of primary products real prices
- B. The upward trend in commodity prices, the volatility of primary products real prices
- C. The downward trend in commodity prices the stability of primary products real prices
- D. The downward trend in commodity prices the volatility of primary products real prices
Explanation
Primary-export dependence is risky because commodity prices have shown a long-run downward tendency relative to manufactured goods and are highly volatile. These conditions make export earnings and development planning uncertain.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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