Which of the Following Is an External Factor That Has

question 34

Multiple Choice

Which of the following is an external factor that has influenced U.S. policy toward the Arab Middle East.

• A) Differences within the Obama administration over whether to intervene in Syria.
• B) President Obama's reluctance to commit U.S. "boots on the ground" in the Middle East.
• C) The presence of oil in the Persian Gulf region.
• D) The interests of U.S. companies in stability in the Arab world.

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Definitions:

Competitive Firm

A business that operates in a market with many buyers and sellers, where the company does not have the market power to set prices.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers, typically downward sloping.

Perfectly Competitive Markets

Markets in which no individual producer or consumer has the market power to influence prices, characterized by many buyers and sellers, homogeneous products, and free entry and exit.

Economic Profits

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, measuring the excess over the opportunity cost of capital.