The Baker Plan for addressing the debt crisis was based on the assumption that
A) most countries would eventually default on their debt.
B) forgiveness of some of the debt was inevitable.
C) hyperinflation would eventually reduce the real value of the debt.
D) renewed lending by U.S. and European banks would restore growth and make the debt manageable.
D
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The ability to make a credible commitment is necessary for the first mover to gain an advantage in a sequential game
Indicate whether the statement is true or false
All of the following are considered input barriers to entry except:
A) control of a key raw material by a single firm. B) the ability to obtain financing for capital projects at more favorable rates than potential competitors. C) the fact that workers in a particular industry belong to a union. D) a patent on a specialized type of capital that is needed to produce a particular product.
Firms seek to differentiate their product
A) to avoid state and federal regulation. B) to create an illusion of value. C) to strengthen their demand and to make it more inelastic. D) to strengthen their demand and to make it more elastic.
If a minimum wage is established, a monopsonist faces
A) an upward sloping supply of labor at all quantities of labor. B) a downward sloping supply of labor at all quantities of labor. C) a horizontal supply of labor at the minimum wage and the upward sloping portion of the labor supply curve above minimum wage. D) a horizontal supply of labor at the minimum wage and the downward sloping portion of the labor demand curve below minimum wage.