Which of the Following Has Led to Significant Tensions Between

question 20

Multiple Choice

Which of the following has led to significant tensions between the US and China in recent years?

• A)An aviation accident that forced a U.S. Navy fighter plane to land on China's Hainan Island.
• B)American outrage at the massacre in Tiananmen Square.
• C)American support for an independent Taiwan and China's determination to hold the island.
• D)China's distrust of the United States for their ongoing involvement in Southeast Asia.
• E)American admonitions that China must improve its human rights record.

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Definitions:

Incentive To Cheat

The motivation or tendency to deceive or engage in dishonest practices for personal gain, often seen in competitive situations.

Kinked-Demand Curve

A demand curve that has a flatter slope above the current price than below the current price. Applies to a noncollusive oligopoly firm if its rivals will match any price decrease but ignore any price increase.

Noncollusive

Describes competitive behavior among firms in an industry that do not engage in collusion or agreements to control prices or market shares.

Oligopoly Situation

A market structure characterized by a small number of firms that have significant control over market prices and competition.