The Turn Towards a New Economic Model Prioritizing the Free

question 67

Multiple Choice

The turn towards a new economic model prioritizing the free market in the 1980s catalyzed a development paradigm that did what?

• A) Emphasized aid not trade
• B) Emphasized trade not aid
• C) Was top-down to control for corruption
• D) Was community based, and localized
• E) Prioritized the benefits of liberalization

---

Definitions:

Market Price

The current price at which an asset or service can be bought or sold.

Monopolistic Competitor

A firm operating in a monopolistic competition market, selling a product that is differentiated from those of competitors.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial gain that exceeds opportunity costs.

Perfect Competitor

A firm in a perfectly competitive market, having no control over market price and where goods offered are perfect substitutes.