Developing Countries

question 11

Multiple Choice

Developing countries

• A)do not benefit from foreign aid
• B)do not benefit from private investment
• C)generate less than half of their annual flow of foreign exchange from exports
• D)must acquire foreign exchange in order to pay for imports
• E)need to decrease labor productivity

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Definitions:

Cartel

A formal agreement among firms (or countries) in an industry to set the price of a product and establish the outputs of the individual firms (or countries) or to divide the market for the product geographically.

Monopoly Price

The price set by a monopolist, which is typically higher than in competitive markets, reflecting the monopolist's market power and lack of competition.

Patents and Copyrights

Legal tools that give creators and inventors exclusive rights to their creations and inventions for a certain period, encouraging innovation.

Collude

When two or more firms agree to work together, usually secretly, to limit competition and increase prices.