Which of the following, if happens, may result in an increase in the relative price of primary products in the world market?

Question

Quizplus · Accepted Answer

When productivity growth in primary sectors is slower than in manufacturing sectors, it typically leads to higher costs for primary products relative to manufactured goods. This is because slower productivity growth in primary sectors means that the costs of producing these goods do not decrease as quickly as they do for manufactured goods, where productivity is growing faster. As a result, the relative price of primary products in the world market may increase.

Which of the Following, If Happens, May Result in an Increase