If a Country Is Grappling with a Major Balance-Of-Payment Difficulty

question 9

Multiple Choice

If a country is grappling with a major balance-of-payment difficulty, it may not be able to expand imports from the outside world. Instead, the country may be tempted to

• A)impose measures to restrict imports.
• B)impose measures to discourage capital outflows.
• C)Both a and b
• D)None of the above

---

Definitions:

Utility Function

A mathematical representation that ranks an individual's preferences for different bundles of goods or outcomes, based on the level of satisfaction or utility they provide.

Consumption

The act of utilizing goods and services to satisfy needs or desires.

Total Cost

The sum of fixed and variable costs incurred by a firm in the production of goods or services.

Price of Cheese

The cost at which cheese is sold, which can vary based on factors like type, quality, demand, and geographical location.