Drawing on the Insights from the Exit, Voice, and Loyalty

question 20

Multiple Choice

Drawing on the insights from the Exit, Voice, and Loyalty game examined in Chapter 3, what inferences could we have made about the citizens of the repressive East German regime during the height of the cold war (say, the 1960s through the early 1980s) ?

• A) that the citizens had a credible exit threat
• B) that the citizens did NOT have a credible exit threat
• C) We wouldn't be able to tell if the citizens had a credible exit threat or not based on what we could observe at the time.

---

Definitions:

International Trade

The exchange of goods, services, and capital across international borders or territories.

Inflationary

Related to or indicative of the increase in prices of goods and services over time, leading to a decrease in the purchasing power of money.

Self-Sufficient

Capable of fulfilling all necessary needs without relying on external resources or assistance.

Tariff

A tax imposed by a government on goods and services imported from other countries to raise state revenue or protect domestic industries.