Answer to Question 1
The ratio of the price of a country's exports to that of its imports both in index form. Changes in the pattern of relative demand as income or tastes change in various parts of the world, and changes in supply, such as those brought about by technological progress. Discussed in detail in the chapter.
Answer to Question 2
The concept of absolute poverty is discussed in the text and the progression of absolute poverty in the developing world is shown in Figure 2.6 . If the concept of relative poverty was discussed in the lectures, instructors may look for that distinction in the answer.
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