The Risk of Default on the Part of the Importer

question 34

Multiple Choice

The risk of default on the part of the importer is present as soon as

• A) a price quote is requested.
• B) goods are shipped.
• C) the export contract is signed.
• D) goods are received.

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Definitions:

Actual Output

The real production level of goods and services in an economy within a specific period, measured by GDP.

Potential Output

The maximum amount of goods and services an economy can produce when it is fully employed, without causing inflation.

Structural Unemployment

The occurrence of unemployment because of modifications in the industrial sector, typically induced by technological evolution, as opposed to alterations in the supply or demand of the market.

Aggregate Supply Curve

A graphical representation that shows the relationship between the overall price level in an economy and the total production of goods and services by that economy.