The Five Forces Model illustrates the forces that determine the level of product differentiation and price competition in an industry.
Answer the following statement true (T) or false (F)
False
You might also like to view...
Other things constant, if there is an increase in the demand for goods now compared to goods in the future, we would expect that the
a. real interest rate would decline. b. capital investment rate would decline. c. current rate of saving would increase. d. real interest rate would rise.
An optimum currency union refers to the decision by a country to:
A) join a monetary union that best serves its self-interest. B) join a free trade area. C) dollarize its economy. D) eliminate tariffs.
The AS/AD model looks similar to the microeconomic supply and demand model
A. but is not based on it. B. and is based on the microeconomic supply and demand model because the AS/AD is a macro representation of the micro model. C. and is based on the microeconomic supply and demand model because both are based on opportunity costs. D. and is based on the microeconomic supply and demand model because both are based on the principle of substitution.
The gains from joining a trade bloc are tied to trade diversion and the losses are tied to trade creation.
Answer the following statement true (T) or false (F)