A strategic trade policy of questionable success was

A. Japan's elimination of tariffs on rice imports.
B. Iraq withholding oil from the world market.
C. Britain and France subsidizing AIRBUS.
D. U.S. consideration of legalizing marijuana.


Answer: C

Economics

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To deter a potential entrant, an existing firm in a market may threaten to sharply increase production so that the entrant will be left with a small share of the market

The firm can make this threat credible by limiting its own options, and possible actions of this type include: A) signing long-term sales contracts that commit the firm to high levels of output. B) building a very large factory that could potentially produce enough output to meet most of the market demand. C) signing long-term purchase contracts for large amounts of production inputs. D) all of the above

Economics

Using a graph above, show the short-run and long-run effects of an expansionary monetary policy

What will be an ideal response?

Economics

Savings and investment are equal:

A. at the equilibrium in the market for loanable funds. B. when banks operate according to banking regulations. C. because banks regulate their flow. D. at an interest rate set by the Fed.

Economics

People who buy used homes often insist on having a "home inspection" before they finalize the purchase. If the house fails the inspection the buyer has the right to refuse to buy the house unless the seller fixes whatever problems are found. Does this help or hurt the seller?

What will be an ideal response?

Economics