If the Average Income of a Norwegian Is Higher Than

question 75

Multiple Choice

If the average income of a Norwegian is higher than the average income of a Belizean, what is the most likely reason?

• A) Productivity is higher in Norway than in Belize.
• B) Norway has a more industrial economy than Belize.
• C) There is more competition in Norway than in Belize.
• D) Labour unions are more aggressive in Norway than in Belize.

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Definitions:

Monopolistically Competitive

Describes a market structure in which several or many sellers each produce similar, but slightly differentiated products, and each has some control over price.

Short-run Profits

Earnings calculated over a short period during which at least one of a firm's inputs is fixed, focusing on immediate financial return rather than long-term investments.

Long-run Profits

Profits achieved over a longer period, reflecting the sustainability and effectiveness of a business strategy.

Formal Promotions

Organized, official advancement of employees to higher positions with more responsibility within a company.