Which of the Following Leads to an Increase in Net

question 132

Multiple Choice

Which of the following leads to an increase in net exports in the long run?

• A)either a decrease in the budget deficit or imposing an import quota
• B)a decrease in the budget deficit but not imposing an import quota
• C)imposing an import quota but not a decrease in the budget deficit
• D)neither a decrease in the budget deficit nor imposing an import quota

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Definitions:

Nash Equilibrium

A concept within game theory where no player can benefit by changing strategies while the other players keep theirs unchanged.

Bertrand Model

An economic model of competition among firms that compete by setting prices simultaneously.

Payoff Matrix

A table that shows the payoffs for each player in a game for every possible combination of actions by the players.

Economic Profits

The financial gain achieved when revenues exceed both explicit and implicit costs.