What is a Nash equilibrium?
What will be an ideal response?
A Nash equilibrium is an outcome of a game where both players are playing their best strategy, given the strategy chosen by their opponent.
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If a good is an inferior good, then its
A) demand curve will be upward sloping. B) income effect reinforces the substitution effect. C) income elasticity is negative. D) Engel curve cannot be drawn.
The purpose of convention is
A) to create a Nash game. B) to determine one equilibrium out of a multi-equilibrium situation. C) to offer multiple choices to players. D) all of these choices.
As the economy becomes more technologically sophisticated, the wage premium can be expected to
a. continue rising. b. continue falling. c. rise. d. fall.
Refer to the above data. What level of total utility is realized from the equilibrium combination of J and K determined in the previous question?
A) 156 utils B) 124 utils C) 276 utils D) 36 utils