1 10 Points Question 1 Which market structure is likely to become more prevalent as a result of increased international trade? Option A Perfect competition Option B Monopoly Option C Oligopoly Option D Monopsony Question 2 Question 2 10 Points Question 2 Which game theory concept explains why firms in an oligopoly might choose not to cooperate, even if cooperation would lead to better outcomes for all? Option A Dominant strategy Option B Prisoner's dilemma Option C Zero-sum game Option D Pareto efficiency Question 3 Question 3 10 Points Question 3 What is a Nash equilibrium in game theory? Option A A situation where one player dominates the market Option B A state where no player can benefit by changing their strategy while the other players' strategies remain unchanged Option C A scenario where all players agree to cooperate Option D An outcome where the total benefits are maximized for all players Question 4 Question 4 10 Points Question 4 How does international trade typically impact domestic monopolies? Option A It reinforces their market power by reducing competition. Option B It erodes their market power by introducing foreign competitors. Option C It has no significant impact on their market power. Option D It forces them to merge with foreign firms. Question 5 Question 5 10 Points Question 5 What is one way international trade can lead to increased market efficiency? Option A By increasing tariffs and trade barriers Option B By enco