The deteriorating-terms-of-trade-argument is based on an assumption that the value of ____ will fall over time.
A)labor inputs
B)capital inputs
C)technology
D)manufactured goods
E)primary products

Question

Quizplus · Accepted Answer

The deteriorating-terms-of-trade-argument is based on the assumption that the value of primary products, such as natural resources or agricultural products, will fall over time in comparison to manufactured goods. This happens because as the supply of primary products increases, their prices fall while the prices of manufactured goods continue to rise due to technological advancements and increased productivity.

The Deteriorating-Terms-Of-Trade-Argument Is Based on an Assumption That the Value