-The Principle of Minimum Differentiation

question 51

Multiple Choice

-The principle of minimum differentiation

• A) results in political parties proposing very similar or possibly identical policies.
• B) refers to the tendency of competitors to make themselves different in order appeal to the maximum number of clients or voters.
• C) explains why Burger King, Wendy's, and other fast food restaurants tend to locate far away from each other.
• D) None of the above answers are correct.

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Definitions:

Federal Deposit Insurance Corporation

A U.S. government agency that protects depositors in the event of a bank failure by insuring deposits up to a certain limit.

Money Supply

The total amount of money available in an economy at a specific time.

Tax Increases

Government-imposed hikes in taxes intended to raise additional revenue for public spending or to influence economic behavior.

Trade Restrictions

Measures implemented by governments to control the amount and type of goods and services that can be traded across borders, such as tariffs, quotas, and embargoes.