A government subsidy to an industry having increasing returns to scale in order to capture international market share is an example of
a) an embargo
b) a boycott
c) strategic trade policy
d) the Prebisch-Singer hypothesis
e) import substitution
c) strategic trade policy
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Assume that there is no way to prevent someone from using an interstate highway, regardless of whether or not she helps pay for it. This characteristic is associated with:
A. rival goods. B. complementary goods. C. capital goods. D. public goods.
Which of the following describes that people cannot examine every possible choice available to them but instead use simple rules of thumb to sort among the alternatives that happen to occur to them?
A. normative economics B. ceteris paribus C. self-interest D. bounded rationality
Risk-seeking behavior:
A. is an aspect of an individual's preferences. B. is irrational. C. is the same for everyone. D. All of these statements are true.
Discuss the pattern of allocation of foreign aid by members of the Development Assistance Committee (DAC) to developing countries in recent years. What are the priorities of the DAC members in allocating foreign aid among recipients?
What will be an ideal response?