Which of the following reasons for international specialization best explains why many small-population countries import automobiles from Japan, the U.S., and Germany rather than produce them domestically?
a. Differences in resource endowments
b. Economies of scale
c. Differences in tastes
d. Trade restrictions
b
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Refer to the scenario above. The best approach to play this game is to use:
A) a dominant strategy. B) backward induction to come to a decision. C) a credible commitment to influence the payoffs of the game. D) a mixed strategy.
Stagflation refers to
a. inflation that rises and falls from year to year. b. increasing output above full-employment levels and thus fueling inflation. c. sluggish production combined with inflation. d. staggered decreases in the money supply designed to lower inflation.
Refer to the above figure. The profit-maximizing price for this firm is
A. P1. B. P2. C. P3. D. P4.
What fiscal policy actions did the U.S. government take in 2008 and 2009?
What will be an ideal response?