Mark and Anthony are participating in a trust game. Mark is given a locked box containing five $100 bills and a key. He can either unlock the box himself or he can give it to Anthony
Anthony can either unlock the box himself or return it to the moderator of the game. If Mark unlocks the box himself, he will get $200 and Anthony will get $100 while the rest will be taken back. If Anthony unlocks the box, they will receive $250 each. If Anthony returns the box to the moderator, he will receive $300, while Mark will not get any money. What will the equilibrium outcome of this game be?
In equilibrium, Mark will choose to unlock the box himself. He will take this decision using the method of backward induction. If he gives the box and the key to Anthony, he is likely to hand them over to the moderator, in which case he will receive $300 but Mark will not get any money. Given this information, Mark will choose to unlock it himself as he will earn $200.
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Which of the following sentences about entrepreneurs stands true?
a. They tend to be risk-averse individuals. b. They are more frequently found in societies that support social conformity. c. They help achieve technological progress. d. They are more frequently found in the local population of the developing countries. e. They usually belong to the traditional elite class.
Which of the following is a source of data on the press measure of income inequality in the United States?
A. The Internal Revenue Service B. The Federal Reserve C. Survey of Consumer Finances D. Survey of Labor and Income
Which of the following uses of tax revenues collected by the government leads to increased capital deepening?
A. building roads B. increased foreign aid C. Medicare payments D. Social Security payments
Refer to the information provided in Figure 3.11 below to answer the following question(s).
Figure 3.11Refer to Figure 3.11. An increase in the price of tomatoes (an input for gardenburgers) will cause a movement from Point B on supply curve S2 to
A. Point C on supply curve S2. B. supply curve S1. C. supply curve S3. D. Point A on supply curve S2.