If Exporters of a Primary Product Form an International Cartel

question 42

Multiple Choice

If exporters of a primary product form an international cartel, then:

• A)the importing countries will be forced to reduce the barriers on their imports.
• B)the world supply of the primary product will expand substantially.
• C)the world efficiency will increase.
• D)output of the primary product will fall and its price will rise.

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Definitions:

Capital Contributions

The value of assets contributed to a company by its owners or shareholders.

Beginning Capital Balance

The amount of capital recorded in a company's accounts at the start of a financial period.

Personal Use

The employment of an asset or resource for individual rather than business or commercial purposes.

Division of Income

The method by which a company's profit is distributed among its various stakeholders, including shareholders, employees, and sometimes the government in the form of taxes.