A country uses strategic trade policy to A) increase profits ...

[anjilletteb]

A country uses strategic trade policy to
 
  A) increase profits that accrue to domestic producers.
  B) affect the exchange rate of its currency.
  C) impose countervailing duties.
  D) allow dumping of imports to increase consumer surplus.

Question 2

Signals can help prevent adverse selection as long as a false signal is costly to the person sending it.
 
  Indicate whether the statement is true or false

[chloejackso]

Answer to Question 1

A

Answer to Question 2

True . If false signals can be made at little cost to the perpetrator, the signals are meaningless. Signals are believed only when they are credible.