In the years before the Civil War, Southern states, because of high protective tariffs, were forced to buy most of their manufactured goods from _________.

All of the following are considered to be problems associated with the use of concentration ratios to measure market power except:

A) the market definitions used in their construction may be arbitrary. B) two different markets with the same concentration ratio may have very different distributions of market share among firms used to calculate the concentration ratio. C) consideration of exports and imports generally causes concentration ratios to be overstated. D) concentration ratios are often based on national statistics and may not reflect substantial concentration in a market at a more localized level.

Using a fixed exchange rate to undervalue your currency:

A. will increase your exports. B. makes imports very expensive for your citizens. C. will encourage capital flow to countries other than your own. D. All of these statements are true.