In the Brander-Spencer Model the Subsidy Raises Profits by More

question 1

Multiple Choice

In the Brander-Spencer model the subsidy raises profits by more than the subsidy because of

• A) the "multiplier" effect of government expenditures.
• B) the military-industrial complex.
• C) the forward and backward linkage effects of certain industries.
• D) the deterrent effect of the subsidy on foreign competition.
• E) the economies of scale once the company enters the market.

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Definitions:

Southern Plains

A geographic area in the United States known for its flat landscapes, extending through parts of Texas, Oklahoma, Kansas, and New Mexico.

Settlement of Texas

The process in the 18th and 19th centuries whereby settlers, primarily from the United States, moved into the region of Texas, leading to its eventual annexation into the U.S.

Spanish Influence

The impact and cultural legacy of Spain on other countries and regions, often through exploration, colonization, or cultural exchange.

Texas

A U.S. state located in the South Central region, known for its large size, diverse landscapes, and significant historical and cultural contributions.