Though Each Nation's Economic Collapse in the 1990s Was Different,most

question 28

Multiple Choice

Though each nation's economic collapse in the 1990s was different,most were precipitated by a massive and sudden _________________.

• A)inflow of short-term capital
• B)withdrawal of short-term capital
• C)inflow of illegal immigrants
• D)volatility of short-term interest rates

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Definitions:

Opportunity Cost

The cost of foregone alternatives when a decision is made, representing the benefits that could have been gained by choosing the next best alternative.

Labor-intensive

Refers to a type of industry or process that requires a large amount of human labor to produce goods or services, as opposed to being heavily automated.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than its competitors.

Specialization

The process of focusing on and becoming expert in a particular subject or skill, often resulting in increased efficiency and productivity in economic contexts.