To avoid trade restrictions, a U.S. firm moves its final production process to Ireland and then ships the final products to the United Kingdom. This is an example of
A. trade deflection.
B. trade diversion.
C. protectionism.
D. rules of origin.
Answer: A
You might also like to view...
Sebastian decides to open a tree farm. When deciding to open his own business, he turned down two separate job offers of $25,000 and $30,000 and withdrew $20,000 from his savings. Sebastian's savings account paid 3 percent interest. He also borrowed $20,000 from his brother, whom he pays 2 percent interest per year. He spent $15,000 to purchase supplies and earned $50,000 in revenue during his
first year. Which of the following statements is correct? a. Sebastian's total explicit costs are $15,400. b. Sebastian's total implicit costs are $55,600. c. Sebastian's accounting profit is $35,000. d. Sebastian's economic profit is $4,600.
Personal income equals disposable personal income plus:
A. personal income taxes. B. transfer payments. C. dividend payments D. personal savings.
A monopoly maximizes profit by finding the output level where the difference between marginal revenue and marginal costs is as large as possible.
a. true b. false
Real GDP per person in Australia was $5626 in 1870. Over the next 130 years, it grew at a compound annual rate of 1.145%. If, however, real GDP per person had grown at an average compound rate of 1.5%, then real GDP per person in Australia in 2000 would have been approximately:
A. $24 716 B. $38 975 C. $53 663 D. $73 828