Which of the following is true?
A. A secure strategy is the optimal strategy for a player no matter what the opponent does.
B. In an infinitely repeated game with a low interest rate, collusion is unlikely because the game unravels so that effective punishment cannot be used during any time period.
C. For a finitely repeated game, the game is played enough times to effectively punish cheaters, and therefore collusion is likely.
D. None of the answers is correct.
Answer: D
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Which of the following correctly describes "frictional unemployment"?
A) Frictional unemployment falls in recessions and rises in expansions. B) Frictional unemployment occurs mainly during recessions. C) Frictional unemployment includes only people who are job losers. D) Frictional unemployment is a normal occurrence in a growing economy. E) Frictional unemployment includes only people who are job leavers.
The horizontal axis on the aggregate demand–aggregate supply model measures
A. the price of the specific product produced. B. the level of total output. C. the price level. D. the level of employment.
Because the income tax structure is progressive, the amount of taxes paid is a _____
a. constant fraction of income throughout the business cycle b. larger fraction of income in expansions than in contractions c. smaller fraction of income in expansions than in contractions d. decreasing function of income in both expansions and contractions e. constant amount at all levels of output and income
If tofu is a normal good, an increase in income will:
a. cause tofu to sell at a lower price. b. increase the production of tofu. c. shift the demand curve for tofu to the left. d. shift the demand curve for tofu to the right. e. rotate the supply curve in a clockwise manner.