The Word Bank

question 2

Multiple Choice

The Word Bank

• A) primarily makes loans and also issues a smaller number of direct grants to developing countries.
• B) funds primarily comes from private financial markets
• C) is controlled through a system of weighted voting in which the countries that contribute the most funds (the richest ones) have by far the greatest influence.
• D) Both A and C are correct
• E) All of the above are correct.

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Definitions:

Sunk Costs

Expenses that have already been incurred and cannot be recovered, often considered in decision-making processes.

Price War

A competitive strategy in which retailers reduce prices to gain business, often leading to lower profit margins for the competitors.

Mixed Strategy

In game theory, a strategy in which a player randomizes over possible actions, assigning a probability to each.

Nash Equilibrium

A concept in game theory where no player can benefit by changing their strategy while the other players keep theirs unchanged, representing a state of mutual best responses.