According to Krugman, the ideal way for a country to respond, when the foreign competitors of its companies are already being supported by government subsidies, is probably not to engage in retaliatory action, but to:
A. help establish rules that minimize the use of trade-distorting subsidies.
B. adopt the strategic trade policy as a way to establish domestic firms in a dominant position in the global industry.
C. provide a subsidy to a new industry where the foreign competitors have not had the benefit of such strategic trade policies.
D. use a combination of home-market protection and export-promoting subsidies.
E. provide high levels of subsidies to the oldest industry in the country.
A
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Which one of the following statements related to risk is correct?
A. The beta of a portfolio must increase when a stock with a high standard deviation is added to the portfolio. B. Every portfolio that contains 25 or more securities is free of unsystematic risk. C. The systematic risk of a portfolio can be effectively lowered by adding T-bills to the portfolio. D. Adding five additional stocks to a diversified portfolio will lower the portfolio's beta. E. Stocks that move in tandem with the overall market have zero betas.
The court will not rule on when a contract must be completed if time for performance is unspecified
a. true b. false