During the Great Depression, Most Nations Lowered Tariffs and Abolished

question 99

True/False

During the Great Depression, most nations lowered tariffs and abolished import quotas to encourage the flow of trade.

Understand the concept of long-run adjustments in purely competitive markets including entry and exit of firms.

Comprehend that in the long run, purely competitive markets yield zero economic profits due to the entry or exit of firms.

Recognize the conditions under which firms will either enter or leave purely competitive markets.

Identify the characteristics and outcomes of constant-cost, increasing-cost, and decreasing-cost industries in the long run.

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Definitions:

Fixation

(1) in thinking, the inability to see a problem from a new perspective; an obstacle to problemsolving. (2) in personality theory, according to Freud, a lingering focus of pleasure-seeking the developing human organism from about 2 weeks after fertilization through the secondmonth

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions.

New Perspective

Fresh outlook or approach towards understanding or addressing an issue or concept.

Heuristics

Simple, efficient rules or guidelines used to make quick decisions or solve problems.