Refer to the above payoff matrix (in years of sentence) for two people (Bo and Max) charged for robbery. Which of the following is the outcome of the dominant strategy without cooperation?
A) Both Bo and Max confess.
B) Both Bo and Max do not confess.
C) Bo confesses while Max does not confess.
D) Bo does not confess while Max confesses.
A
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Officers of five large building-materials companies meet and agree than none of them will submit bids on government contracts lower than an agreed-upon level. This is an example of:
a. price fixing. b. vertical restriction. c. a tying contract. d. an interlocking directorate.
For the purposes of calculating GDP using the expenditure approach, which of the following is not included in the government purchases account?
A. The government's purchase of a computer B. The payroll of the federal government C. Government purchases of pencils D. Welfare payments to the poor
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
If the economy produces full employment output, an increase in government spending increases output but not the price level.
Answer the following statement true (T) or false (F)