Refer to the following payoff matrix:Player 1Player 2??Low QHigh Q?Low Q$10,$35$25,$30?High Q$30,$7$20,$6If the payoff matrix is a simultaneous-move production game, the Nash equilibrium is for:
A. player 1 to produce high output and player 2 to produce low output.
B. both players to produce low output.
C. player 1 to produce low output and player 2 to produce high output.
D. both players to produce high output.
Answer: A
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Budget deficit is the amount by which the government’s expenditures exceed its receipts during a specified period of time, usually a year.
Answer the following statement true (T) or false (F)
The U.S. did not lapse back into a depression after World War II ended for all of the following reasons EXCEPT
A. a larger role taken on by the federal government. B. pent up demand for housing and automobiles. C. government programs that aided the trend toward suburbanization. D. a return to laissez-faire economic policies.
In the short-run if there is a surplus in the market for a product, the rationing function of price can be expected to cause
A) an increasing shift in the demand for the product. B) a decreasing shift in the supply of the product. C) an increase in the market price of the product. D) a decrease in the market price of the product.
In production and cost analysis, the short run is the period of time in which one (or more) of the resources employed in the production process is fixed or incapable of being varied
a. true b. false