Assume 1990 to Be the Base Year

question 181

True/False

Assume 1990 to be the base year.If by the end of 2004 a country's export price index rose from 100 to 125 while its import price index rose from 100 to 125, its terms of trade would equal 100.

Understand the concept and implications of bounded rationality in decision-making.

Differentiate between programmed and non-programmed decision solutions.

Identify the factors that influence decision-making under constraints (e.g., time, information, political considerations).

Recognize the impact of cognitive biases on decision-making.

---

Definitions:

Population Growth

The growth in a population's size over a certain time frame.

Income Distribution

The way in which total income is shared among individuals or households in an economy.

Capital Formation

The process of accumulating assets and resources for future productive use, such as building infrastructures, purchasing equipment, and saving or investing funds.

Developing Countries

Nations characterized by a low level of industrialization, limited access to modern technology, and lower standards of living and income.