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Practice mode Non-Tariff Trade Barriers

Which game theory model is commonly used to analyse oligopoly?

Correct answer A. Prisoner's Dilemma

Explanation

The Prisoner's Dilemma shows how two firms that would gain from cooperating each have an incentive to cheat, explaining why collusion among oligopolists is unstable.

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More Non-Tariff Trade Barriers questions

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Question 01 Non-Tariff Trade Barriers

Suppose a tariff and an import quota cause the same rise in the domestic price of steel. Which statement is then correct?

Correct answer B. They have different impacts on how income is distributed

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Question 02 Non-Tariff Trade Barriers

If a tariff and an import quota raise the domestic price of steel by the same amount, what follows?

Correct answer C. They have identical impact on how much is produced and consumed

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Question 03 Non-Tariff Trade Barriers

What are antidumping duties used for?

Correct answer B. Offset the margin of dumping

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