At the equilibrium price
a. only sellers who value the product more than the equilibrium price would be willing to sell
b. only buyers who value the product less than the equilibrium price would be willing to buy
c. only buyers who value the product more than the equilibrium price would be willing to buy
d. None of the parties would be willing to trade
c
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When China embarked on market changes towards urbanization and manufacturing in 1978, urban disposable incomes were 2.6 times greater than rural net income. By 2008 they were 3.3 times bigger. These market changes have led to
A) increased income inequality between rural and urban populations. B) a decreased Gini ratio. C) the Lorenz curve for income to move closer to the line of equality. D) a movement towards a bell-shaped distribution of income.
A game in which the players explicitly coordinate their decisions to make themselves better off is a
A) cooperative game. B) noncooperative game. C) zero-sum game. D) negative-sum game.
A weakness of the price system is that it completely fails to take account consumer preferences in the distribution of goods and services.
Answer the following statement true (T) or false (F)
A "Prisoners' Dilemma" game demonstrates how ____ is often rational for individuals even though ____
a. the failure to cooperate; cooperation would make everyone worse off b. the failure to cooperate; cooperation would make everyone better off c. cooperative behavior; cooperative behavior might make everyone worse off d. All of the above can be demonstrated with a "Prisoners' Dilemma" game.