Although the price of oil and some commodities has increased in recent years, the price of most raw materials has declined. For countries that primarily produce raw materials, this development has led to
A) declining terms of trade.
B) a rise in terms of trade.
C) opportunities to rely on inexpensive labor.
D) an increase in the export of raw materials.

Question

Quizplus · Accepted Answer

The decline in price of most raw materials means that countries that primarily produce these materials receive less revenue for each unit sold, resulting in a decline in their terms of trade.

Although the Price of Oil and Some Commodities Has Increased