Answer:
Prices are often volatile due to inelastic demand. e.g if there is a ‘good harvest’, supply will increase and there will be a fall in the price of primary products. However, because demand is inelastic, this would lead to a fall in revenue.
coffee-supply-price-growers
The volatile price of coffee – can make planning difficult.
Supply can also be volatile due to weather and disease. For agricultural crops, there is always a risk of crop failure, which could cause economic hardship in one particular year.
Limited resources. One day developing economies may run out of its finite primary products, e.g. precious metals could become scarce. Without diversification, this would leave the economy with a void.
Discourages investment in other aspects of the economy. Concentrating on primary products does not always help the long-term development of an economy because it can contribute towards a lack of investment in other aspects such as education and industrial production. Comparative advantage can change over time. It’s important to not just look at the present comparative advantage, but prospects for next 10 or 20 years.
There is a low-income elasticity of demand for primary products. With a rise in global income, there is a proportionately smaller percentage rise in demand for primary products. (agricultural products tend to be income inelastic). Therefore, if you produce primary products, you may see lower rates of economic growth than countries who produce manufacturing goods – which are more income elastic. The Prebisch-Singer hypothesis suggests that countries who concentrate on primary products are vulnerable to a declining terms of trade.
There are 5 points
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Answer:
False.
Explanation:
budgets are more dependent on day-to-day income & expenses so your money doesn't exceed your budget, while a financial plan is for the future. in short, budget is for short term and financial plan is long term.
Answer:
The factor that encouraged more immagrants to settle in the Northerns state was that there were more open jobs and land to have a better life.
Explanation: Immagrants settled in the northern states because in the south the capital invested less in industrial development so that meant there were fewer jobs for immagrants in the north the Capitals invested more.
On the information given, these are the possible answers
1) land would be ""crude oil used to produce gasoline"2) capital would be "a machine used by a tailor to stitch clothes"3) labor would be "workers building a house"4) entrepreneurship would be "an idea for a car that runs on steam"
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<span>a region perceived to exist by its inhabitants or the general populace</span>
