Which Industrialization Policy Used by Developing Countries Places Emphasis on the Comparative

question 294

Multiple Choice

Which industrialization policy used by developing countries places emphasis on the comparative advantage principle as a guide to resource allocation?

• A) Export promotion
• B) Import substitution
• C) International commodity agreements
• D) Multilateral contract

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Definitions:

Marginal Cost

The expense associated with the production of an extra unit of a product or service.

Rebates

Rebates are partial refunds to purchasers of products or services, often used as a promotional tool by marketers to increase sales or the perceived value of a product.

Peak-Load Pricing

Pricing strategy that involves charging higher prices during peak times when demand is higher and resources are more constrained.

Third-Degree Price Discrimination

A pricing strategy where different prices are charged to different segments of customers based on their willingness to pay.