Which of the Following Could Make Chinese-Made Goods More Expensive

question 23

Multiple Choice

Which of the following could make Chinese-made goods more expensive for American consumers?

• A) A rise in the value of the dollar.
• B) A rise in the value of the yuan.
• C) An increase in the inflation rate in the United States.
• D) A reduction in the size of the U.S. trade deficit.

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Definitions:

Oligopoly

An oligopoly is a market structure characterized by a small number of firms dominating the market, where each firm has significant control over prices and other market factors.

Collusion

A non-competitive, secret, and often illegal agreement between rivals aiming to disrupt the market's equilibrium by controlling the market price, production, or marketing of goods and services.

Empty Threat

In a sequential game with two players, a noncredible (bluffing) statement made by Player 1 that threatens a penalizing action against Player 2 if Player 2 does something that Player 1 does not want Player 2 to do. Opposite of credible threat.

Coercion

The act of compelling or forcing someone to act in a certain way through pressure, threats, or the use of force.