As One Consequence of the Demise of the Soviet Union

question 42

Multiple Choice

As one consequence of the demise of the Soviet Union,

• A) there was a strong revival of religion in Russia.
• B) NATO declared that it would remove nuclear weapons from Europe.
• C) the entire European continent became more stable.
• D) long-suppressed ethnic hatreds flared in Eastern Europe and the former Soviet republics.
• E) the rivalry between Russia and China ended.

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Definitions:

Reaction Function

Describes how one player in a game reacts to the strategy chosen by another player, often used in the study of oligopoly markets.

Cournot Solution

The Cournot Solution is an equilibrium concept in oligopoly theory where firms choose their output levels simultaneously and each firm's decision is based on the output levels of its competitors.

Stackelberg Model

A strategic game in economics where one firm, the leader, sets its output level first, and then the follower firms set their output levels, taking the leader's output as given.

Oligopoly Model

An economic model that describes a market structure in which a few firms dominate the industry and have the ability to influence prices and market outcomes.