16 As a country develops economically, what changes usually take place in the go

Question

16

As a country develops economically, what changes usually take place in the goods it exports?

Raw materials and agricultural products decline in importance and are replaced by services and manufactured goods.

There is little change because comparative advantage does not change.

Services and manufactured goods decline in importance and are replaced by raw materials and agricultural products.

Exports go from being diversified to being specialized in whatever the country finds to its comparative advantage.

17

News Story: Workers at a car-manufacturing plant in Flint, Michigan are laid off because the economy is weak and GM cars aren't selling well. GM isn't sure when the plant will reopen. What type of unemployment describes the workers' situation?

Structural unemployment

Cyclical unemployment

Frictional unemployment

Full unemployment

Explanation / Answer

16 Raw materials and agricultural products decline in importance and are replaced by services and manufactured goods

17 Cyclical unemployment

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