Explain the basic operations of an economic game
What will be an ideal response?
Games can be either cooperative, in which the firms collude, or noncooperative. The players of the game are the decision-makers in oligopolistic firms, and they devise strategies, which are rules used to make a decision. Payoffs are the outcomes of the strategies employed by all of the players.
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Which of the following is not included in GDP?
a. the fees for legal services rendered by your attorney b. the replacement of brake pads on your six-year-old vehicle c. cash income paid to a day laborer that is not reported to the tax authorities d. the payments for a chiropractor's services
Money has to be a precious metal, since precious metals have all of the important characteristics of money
Indicate whether the statement is true or false
If the quantity demanded of a certain good responds only slightly to a change in the price of the good, then the
a. demand for the good is said to be elastic. b. demand for the good is said to be inelastic. c. law of demand does not apply to the good. d. demand curve for the good shifts only slightly in response to a change in price.
The median voter theorem states that:
A. politicians choose policies that, on average, generate more benefits than costs for the average voter. B. the median voter tends to be the most informed voter. C. candidates whose policies reflect the preferences of the median voter are more likely to win an election. D. political success depends on candidates taking positions that are either to the right or to the left of the political center.