The figure gives the payoff matrix for two individuals who are being accused of robbing a bank together. What is dominant strategy for Bob?
A) Confess.
B) Don't confess.
C) Flip a coin to decide what to do.
D) There is no dominant strategy.
Answer: A) Confess.
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
Use the following production possibilities frontier to answer the next question.
The selection of which point on the production possibilities frontier is most likely to result in the largest increase in economic growth over time?
A. Point 1 B. Point 2 C. Point 3 D. Point 4
If, at a firm's projected sales level, the marginal cost is $125, the average cost is $150 and the markup is 20 percent, then its selling price is
A) $125. B) $150. C) $165. D) $180.
When the actual GDP equals the full-employment level of GDP, the
a. economy is in long-run equilibrium. b. price level must be rising. c. expected inflation must be zero. d. aggregate supply curve is not constrained by the scarcity of resources.