Indivisibility Creates Problems for the Bargaining Model's Prediction That War

question 62

Multiple Choice

Indivisibility creates problems for the bargaining model's prediction that war should NOT occur because:

• A)all states value indivisible goods highly,so they bargain fiercely and have more incentive to bluff.
• B)indivisible goods make it impossible to calculate the probable outcome of war and the bargaining range is unknown.
• C)it is difficult to credibly commit to a bargain over an indivisible good when power shifts over time.
• D)when goods are indivisible,states are unlikely to agree to any split of the good.
• E)none of the states can see the good over which they are bargaining.

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, usually as a result of past transactions or events.

Total Stockholders' Equity

The total net value belonging to the owners of a corporation, calculated as the difference between total assets and total liabilities.

Acid Test Ratio

A measure of a company's short-term liquidity, calculating its ability to cover short-term liabilities with its most liquid assets.

Current Assets

Short-term assets that are expected to be converted into cash, sold, or consumed within one year or the business's operating cycle, whichever is longer.