What is meant by a dominant strategy?
What will be an ideal response?
A dominant strategy is a strategy that is best for a player no matter what his or her opponents do. A rational player will always play a dominant strategy if he or she has one.
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Which of the following items is NOT part of government expenditure on goods and services in the GDP accounts?
A) gasoline purchases for government car pools B) Social Security expenditures C) new computer hardware for use by the IRS D) drapes to brighten up the president's office
Other things remaining the same, the
A) larger the value of U.S. imports, the smaller is the quantity of foreign currency demanded. B) larger the value of U.S. imports, the greater is the quantity of U.S. dollars supplied to the foreign exchange market. C) lower the exchange rate, the cheaper are foreign-produced goods and services. D) higher the exchange rate, the greater is the expected profit from selling dollars.
In the pivotal Supreme Court decision Munn v Illinois (1877), the court held that
(a) natural monopolies were subject to government regulation. (b) business in interstate commerce was subject to regulation. (c) any business, whether or not a natural monopoly, or whether or not it was in interstate commerce, may under certain circumstances be subject to regulation. (d) only businesses chartered (licensed) by governments could be subjected to government regulation.
The advantage of forward contracts over future contracts is that they
A) are standardized. B) have lower default risk. C) are more liquid. D) are more flexible