If you are following a tit-for-tat strategy in a repeated game, and your opponent makes a cooperative move, you will:
A. collude.
B. make a cooperative move in the next round.
C. price compete.
D. defect.
B. make a cooperative move in the next round.
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In? 2003, China's control of the value of the yuan became an economic and political issue for the U.S.? because:
A) increased U.S. exports to China. B) decreased U.S. exports to China. C) increased China imports from the U.S. D) none of the above.
At harvest time the supply of wheat is perfectly inelastic. If the government taxes wheat at $1 a bushel, then
A) the seller pays the entire tax. B) the buyer pays the entire tax. C) the seller and the buyer split the tax evenly. D) the seller and the buyer split the tax but the seller pays more. E) no one pays the tax because the wheat must be harvested or it will go to waste.
Which of the following is considered a default-risk-free instrument?
A) a three-month commercial paper issued by GE B) a share of stock issued by Google C) a three-month Treasury bill D) a ten-year bond issued by Intel
The payment made to an owner of a resource in excess of the opportunity cost of the resource is
a. economic rent b. economic profit c. wages d. interest e. opportunity cost