In the prisoner's dilemma:
A. a dominant strategy exists for only one player.
B. a non-cooperative outcome is predicted.
C. a cooperative win-win outcome can be predicted.
D. All of these statements are true.
B. a non-cooperative outcome is predicted.
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How can tariffs lead to a situation in which all parties to a trade lose?
When a U.S. firm engages in outsourcing, it benefits ________ and harms ________.
A. the U.S. consumers of the firm's products; the firm's U.S. employees B. the U.S. consumers of the firm's products; the firm's foreign employees C. the U.S. consumers of the firm's products; the firm D. the firm; the U.S. consumers of the firm's products
A fall in the relative prices of a country’s exports tends to ________________ that country’s net exports, and thereby, to ____ its real GDP.
A. increase; raise B. decrease; raise C. decrease; decrease D. None of the above is correct.
Refer to Scenario 9.10 below to answer the question(s) that follow. SCENARIO 9.10: Investors put up $1,040,000 to construct a building and purchase all equipment for a new cafe. The investors expect to earn a minimum return of 10 percent on their investment. The cafe is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The cafe charges $6 on average per meal.Refer to Scenario 9.10. In the long run, the cafe will want to
A. go out of business. B. shut down but not go out of business. C. operate and expand. D. operate but not expand.