A Small Country Has Applied for Membership in an Economic

question 5

Multiple Choice

A small country has applied for membership in an economic union.Before membership is granted,the ruling body of the union requires that the applicant state reduce its budget deficit to a specific percentage of GDP.This type of arrangement could be classified as

• A) structural reform.
• B) conditionality.
• C) neoliberalism.
• D) export-oriented adjustment.

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Definitions:

Residual Income

The net income that exceeds the minimum required return on investment or capital; often used as a performance measure in managerial accounting.

Investment Opportunity

An option to allocate resources with the expectation of generating a return or profit in the future.

Turnover

In business, refers to the rate at which employees leave a company and are replaced by new hires; can also refer to the total sales in a given period.

Turnover

A financial metric indicating the rate at which a company's inventory is sold and replaced over a period.