How does the leader's behavior in the quantity-leadership (Stackelberg) game compare to that in the analogous price-leadership game?
a. It behaves as a "puppy dog" in both.
b. It behaves as a "top dog" in the quantity leadership game but a "puppy dog" in the price leadership game.
c. It behaves as a "top dog" in the quantity leadership game but a "puppy dog" in the price leadership game.
d. It behaves as a "top dog" in both.
b
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When a country's export spending exceeds import spending, the country is experiencing a:
A) trade deficit. B) trade surplus. C) budget deficit. D) none of the above.
Empirical evidence suggests that economies of scale, advertising and image differentiation, and risk spreading all help account for the large-scale production that exists in many sectors of the economy
Indicate whether the statement is true or false
China is not an important market for other nations' exports
Indicate whether the statement is true or false
How does a decrease in value of a country's currency relative to other currencies affect its balance of trade?
A) A decrease in value of a country's currency relative to other currencies reduces imports, raises exports, and increases the balance of trade. B) A decrease in value of a country's currency relative to other currencies raises imports, reduces exports, and increases the balance of trade. C) A decrease in value of a country's currency relative to other currencies raises imports, reduces exports, and reduces the balance of trade. D) A decrease in value of a country's currency relative to other currencies reduces imports, raises exports, and reduces the balance of trade.