The prisoner's dilemma and the problem of the cartel are very similar. In both cases,
A. noncooperation would improve the outcome, but it rarely happens.
B. noncooperation is an instable solution.
C. cooperation would improve the outcome, but it rarely happens.
D. cooperation is the only solution.
Answer: C
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The quantity theory of money and prices
A) is derived from the equation of exchange assuming that prices remain constant. B) shows how a change in the price level leads to a change in the money supply. C) shows how the demand for money is inversely related to the price level. D) is the hypothesis that changes in the money supply leads to proportional changes in the price level.
The supply curve for chicken will shift to the right, if production costs increase
a. True b. False Indicate whether the statement is true or false
Tariffs
a. benefit consumers by lowering prices b. harm producers by decreasing competition in the product market c. harm consumers by increasing the quantity of goods available d. skew the terms of trade in favor of importing nations e. benefit domestic producers because they can charge higher prices and sell more output
When the interest rate falls,
a. the opportunity cost of holding money rises b. people shift out of holding interest-yielding asset holdings into holding money c. the quantity of money people will hold decreases d. investment spending decreases e. real GDP will decrease