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SSC Geography QUESTION #6331
Question 1
The Prebisch-Singer hypothesis suggests that over time:
  • Terms of trade deteriorate for primary commodity exporters relative to manufactured goods exporters✔️
  • Technological progress benefits all countries equally
  • Developing countries will catch up to developed countries
  • Free trade benefits all participating nations
Correct Answer Explanation
The Prebisch-Singer hypothesis argues that terms of trade between primary products (developing country exports) and manufactured goods (developed country exports) deteriorate over time for primary exporters, perpetuating underdevelopment.