The trade feedback effect refers to the tendency for an increase in the economic activity in one country to lead to a worldwide in economic activity, which then feeds back to the first country.
Answer the following statement true (T) or false (F)
True
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This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.Given the dominant strategy of MiiTunes according to the figure, we can predict that The Rock Shop:
A. Their actions cannot be predicted because they do not have a dominant strategy. B. will enter and lose $2 million. C. will enter and enjoy profits of $4 million. D. will not enter and earn $0.
The Sherman Antitrust Act was enforced in 1906 by a ruling of the Supreme Court regarding the monopolization of the oil industry by
A) Getty Oil of Oklahoma.
B) Texaco Oil of Texas.
C) Gulf Oil of Pennsylvania.
D) Standard Oil of New Jersey.
Varying the quantity of output produced and sold at preset prices is called:
A. self-correcting economics. B. Okun's law. C. meeting demand. D. spurring inflation.
Which of the following correctly identifies the impact of the formation of the North American Free Trade Agreement (NAFTA) on Mexico?
A. Mexican exports of fruits and vegetables to the United States declined substantially. B. NAFTA allowed Mexico to better exploit its comparative advantage in such products as apparel and food crops. C. After Mexico joined NAFTA, the average wage rates for the unskilled workers declined. D. Mexico's import of financial services and high-tech equipment from the United States declined.