The United States and Brazil are competitors in the world soybean market. In the late 1960s and early 1970s, the Brazilian government developed regulations designed to encourage Brazilian soybean production and exports. An unanticipated effect of the Brazilian regulations was to stimulate U.S. soybean production and exports. The type of economic analysis that would explain and predict these effects is called:

Question

Quizplus · Accepted Answer

General equilibrium analysis considers the interactions between all markets in an economy, including the effects of government regulations on one market on other markets.

The United States and Brazil Are Competitors in the World