Which of the Following Statements Is False

question 316

Multiple Choice

Which of the following statements is false?

• A)Studies show that developing nations that have relied on import restrictions to protect domestic industries have had higher growth rates than similar nations pursuing more open economic policies.
• B)The U.S. Constitution forbids individual states from levying tariffs.
• C)The high tariffs of the Smoot-Hawley Act of 1930 and the retaliation they caused worsened the Great Depression.
• D)The European Union has enhanced prosperity in Western Europe.

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Definitions:

Product Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.

Total Market

The entirety of the demand and supply for a particular good or service across all its potential markets.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and product differentiation.

Oligopolistic

Pertaining to a market structure characterized by a small number of firms controlling the majority of the market share, often leading to coordinated or interdependent market behavior.