Mauritius, an Island Off the Coast of Africa, Competes with Other

question 38

Multiple Choice

Mauritius, an island off the coast of Africa, competes with other countries producing goods with low-skilled labor. In 2006, it was reported that ..."its clothing factories have been exposed to frontal competition from China, India and other Asian mass producers." As a result, "the main export industry has seen a 30 per cent reduction in volume ..." www.ft.com, 3/13/2006
Suppose real GDP is $14 billion, exports total $2 billion and the multiplier is 4. If exports decline by $600,000,000, real GDP in Mauritius will

• A) increase by $2.4 billion
• B) decrease by $2.4 billion.
• C) decrease by $8 billion.
• D) increase by $4 billion.

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Definitions:

Prefrontal Lobes

The part of the brain located at the front of the frontal lobes, important for decision making, planning, and controlling social behaviors.

Occipital

Relating to the occipital lobe in the brain, which is primarily responsible for visual processing.

Temporal

Temporal pertains to time, including its measurement, its passage, and the sequencing of events.

Frontal

Pertaining to the front part of something, especially referring to the frontal lobe of the human brain, which is involved in executive functions such as decision making.