Using game theory as an analytical tool, if one large nation imposes tariffs, the total cost is small; however, when several trading partners do the same:
a. the costs are even smaller.
b. the costs balance out and there is no harm.
c. the costs are the same but the potential gains are much smaller .
d. then all nations gain.
Ans: c. the costs are the same but the potential gains are much smaller .
Economics
You might also like to view...
When the rental price of capital is above the equilibrium price ________
A) we have an excess supply of capital and the rental price should fall B) we have an excess demand of capital and the rental price should fall C) we have an excess supply of capital and the rental price should increase D) we have an excess demand of capital and the rental price should increase E) none of the above
Economics
Table 4-1
Use this table for the following questions.
Economics