Which of the following statements is true?
A) Lower infant mortality rates are always a result of income growth in countries.
B) Lower infant mortality rates are related to income growth in countries.
C) The higher the income per capita, the higher the infant mortality rate.
D) There is no correlation between income per capita and infant mortality rates.
B
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Suppose country X currently does not produce widgets. Instead, it imports widgets from country Z. Then country X establishes a preferential trading agreement with country Y. Following the formation of the PTA, it imports widgets from country Y. What has occurred?
a. There is trade diversion and a welfare loss for country X. b. There is trade creation and a welfare loss for country Y. c. There is trade diversion and a welfare gain for country X. d. There is trade creation and a welfare gain for country Y.
In a repeated prisoners' dilemma game
A) the players act sequentially. B) the outcomes are the same as in a static prisoners' dilemma game. C) firms' choices are not influenced by their opponents' actions. D) cooperation may result if the game is played indefinitely.