A game involving two players with two possible strategies is a prisoner's dilemma if each player has a dominant strategy and:
A. each player's payoff is higher when both play their dominated strategy than when both play their dominant strategy.
B. neither player plays their dominant strategy.
C. there is a Nash equilibrium that yields the highest payoff for both players.
D. each player's payoff is higher when both play their dominant strategy than when both play their dominated strategy.
Answer: A
You might also like to view...
The observation that goods and services flow in one direction and money payments flow in another direction is the principle behind
A) a barter economy. B) the circular flow of income. C) a pure command economy. D) the double coincidence of wants.
Doomsday forecasts about running out of natural resources, with dire consequences,
a. have occurred at least as far back in time as the 16th century. b. have generally been correct, and resources today are nearly all rising in price. c. seldom are taken seriously enough by the public. d. began to be heard for the first time after Earth Day of 1970.
If resources are better suited toward the production of one good than toward another good, then the PPF for those two goods is
A) a straight line. B) bowed outward. C) upward sloping. D) any of the above
The flatter is the IS curve,
A) the more effective is monetary policy. B) the less effective is monetary policy. C) the effectiveness of monetary policy does not change. D) a given change in the money supply will have a smaller effect on output.