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:

Gluteus Medius

Muscle located at the back of the iliac crest and stretches downward toward the greater trochanter of the femur.

Greater Trochanter

A prominent bony projection on the proximal (near) part of the femur, serving as a major site for muscle attachment.

Dystrophy

Progressive atrophy or weakening of a part, such as the muscles.

Congenital Disorders

Health conditions or physical abnormalities present from birth, often resulting from genetic factors or environmental influences during pregnancy.