1) Which of the following statements best describes the Singer-Prebish Thesis?
a) Because developing countries mainly import primary products, their terms of trade may worsen over time
b) Because developing countries mainly export primary products, their terms of trade may worsen over time
c) Because developing countries mainly import primary products, their currency is subject to appreciation
d) Because developing countries mainly export primary products, their currency is subject to depreciation
2) Which of the following events might provide evidence to support the Singer-Prebish Thesis?
a) The invention of polyester
b) The declining price for computer technology
c) The invention of the smart phone
d) The Arab Oil Embargo
3) Which of the following events might provide evidence that contradicts the Singer-Prebish Thesis?
a) The invention of polyester
b) The declining price for computer technology
c) A decline in the share of income spent on food by emerging market economies
d) The declining price of rubber