Brazil's Export Record in 1999 Illustrated the Principle That

question 26

Multiple Choice

Brazil's export record in 1999 illustrated the principle that

• A) a large country will tend to have few exports.
• B) a small country will tend to have a high export ratio.
• C) protectionist policies tend to discourage exports.
• D) export-promoting policies do not tend to work.
• E) import substitution policies helped the Brazilian economy.

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Definitions:

Covert Collusion

An implicit, non-public agreement between firms to fix prices, limit production, or divide markets, without explicit communication.

Allocative Efficiency

A state of the economy where resources are allocated in a way that maximizes the overall benefit to society.

Productive Efficiency

Occurs when a good or service is produced at the lowest possible cost, utilizing all resources efficiently.

Cartel

A formal agreement among firms (or countries) in an industry to set the price of a product and establish the outputs of the individual firms (or countries) or to divide the market for the product geographically.