Suppose a Chinese firm moves its final assembly line to France and then ships the final products to other members of the EU trading bloc. This is an example of

A. trade diversion.
B. trade detection.
C. trade restriction.
D. trade deflection.

Answer: D

Economics

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Which of the following parties is likely to have the most information about the health of an individual who is trying to purchase a health insurance policy?

A) the employer of the individual who is trying to purchase the health insurance policy B) the individual who is applying for the health insurance policy C) the company that issues the health insurance policy D) All parties in the health insurance market have access to the same level of information.

Economics

If the MPC is 0.5, then the spending multiplier must be:

A. 2.25. B. 2.5. C. 2. D. 1.2.

Economics