Compared to Other Industrialized Nations Around the Globe, Defense Spending

question 65

Multiple Choice

Compared to other industrialized nations around the globe, defense spending as a percentage of GDP is

• A)substantially higher than that of the next highest nation.
• B)somewhat higher than France and the United Kingdom but much less than Germany and Japan.
• C)somewhat higher than France and the United Kingdom and much higher than Germany and Japan.
• D)lower than France, the United Kingdom, Germany or Japan.

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Definitions:

Marginal Revenue Function

The rate at which total revenue changes with respect to the output quantity change.

Marginal Costs

The added cost that comes from producing an additional unit of a product or service.

Kinked Demand Model

An economic model that suggests prices remain stable because firms in oligopoly markets may not adjust their prices in response to small shifts in demand or cost.

Demand Curve Shifts

Changes in the demand curve caused by factors other than the price of the good, leading to a new quantity demanded at every price.