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:

General Adaptation Syndrome

A framework that outlines how the body initially responds to stress and its subsequent long-term effects, characterized by three phases: alert, resistance, and fatigue.

Prolonged Stressor

A persistent or long-lasting source of stress that can negatively affect an individual's psychological and physical health.

External Stressors

Stressors that include anything from outside sources that causes you pain and discomfort.

Type A Personality

A temperament characterized by high competitiveness, self-imposed stress, impatience, and a constant sense of urgency.