Waldo's Company Was Expanding into Some Underdeveloped Countries, and Needed

question 56

Multiple Choice

Waldo's company was expanding into some underdeveloped countries, and needed to acquire risk insurance to cover potential fallout from political unrest that was occurring in those countries. What organization might be able to provide this for Waldo?

• A) Commodity Futures Trading Commission (CFTC)
• B) the Federal Trade Commission (FTC)
• C) the Small Business Administration (SBA)
• D) the United States International Trade Commission (USITC)
• E) the Overseas Private Investment Corporation

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Definitions:

Income Effect

A change in the consumption patterns of individuals or economies due to a change in real income or purchasing power.

Labor-Supply Curve

A graphical representation showing the relationship between the quantity of labor supplied by workers and the wage rate.

Income Effect

How an alteration in income levels for a person or economy affects the demand for a particular good or service.

Substitution Effect

The change in quantity demanded of a good that results from a change in price, making the good more or less costly relative to other goods.