At the End of World War II, Many European Countries

question 188

Multiple Choice

At the end of World War II, many European countries were rebuilding and so were eager to buy capital goods and had rising incomes. Where would we expect that the rebuilding increased aggregate demand?

• A)in both Canada and Europe
• B)in Canada, but not in Europe
• C)in Europe, but not in Canada
• D)in neither Canada nor Europe

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Definitions:

Normal Profits

The minimum level of profit necessary for a company to remain competitive in the market, also seen as the cost of keeping an entrepreneur in business.

Economic Profits

Profits calculated by subtracting both the explicit and implicit costs from a firm's total revenues; a measure of earnings exceeding the opportunity costs.

Entry Of Firms

The process by which new companies enter into an industry, adding to the competition.

Government Subsidies

Financial support provided by the government to organizations, businesses, or individuals, aimed at promoting certain activities or reducing costs.