Economics · International Economics & Trade Theories
Consider the following statements regarding the Prebisch-Singer Hypothesis on primary commodity prices: 1. The hypothesis posits that the terms of trade for primary commodity exporting countries tend to deteriorate over time relative to manufactured goods exporting countries. 2. This deterioration is attributed to factors such as technical progress in manufacturing, which reduces the overall demand for primary inputs. Which of the above statements is/are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Neither Statement 1 nor Statement 2
- 2Statement 2 only
- 3Statement 1 only
- 4Both Statement 1 and Statement 2✓
Correct answer
Both Statement 1 and Statement 2
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