The GDPs of Two Emerging Economies (A AndB) Are Equal

question 25

Multiple Choice

The GDPs of two emerging economies (A andB) are equal, but GDP in country B is less volatile than GDP in country A. Both have borrowed $25 billion that must be repaid next year. Which of the following is correct in terms of the probabilities of default?

• A) Both A and B have the same probability of default.
• B) A's probability of default is higher than B's probability of default.
• C) B's probability of default is higher than A's probability of default.
• D) Based on probability, B will default.

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Definitions:

Wildcat Strikes

Unofficial labor strikes that occur without the formal authorization or support of a labor union, often in response to urgent or unaddressed grievances.

Grievance

A formal complaint or concern raised by an employee regarding workplace conditions or treatment.

Union Mergers

The process where two or more labor unions consolidate into a single, larger union to increase bargaining power and member benefits.

Union Organization Campaign

A coordinated series of efforts and activities undertaken by a labor union to encourage and facilitate workers in a workplace to join the union and seek collective bargaining rights.