Country X Has Requested and Received a Loan from the World

question 23

Multiple Choice

Country X has requested and received a loan from the World Bank. Country X may not use the money to finance ________.

• A) new railroads
• B) harbor facilities
• C) national highways
• D) trade deficits

---

Definitions:

Marginal Cost

The increase in total cost that arises from producing one additional unit of a good or service.

Average Variable Cost

The total variable costs divided by the quantity of output produced; it varies with output levels.

Average Total Cost

The per-unit production cost, calculated by dividing the overall production expenses by the number of units produced.

Price Taker

An economic term for a market participant that accepts the prevailing prices without influencing them.