At a carnival roulette wheel, a player can either win $10, $30, or $80 . If it costs $20 to play, should the player expect the game to be fair?
a. Yes, because it costs to play
b. No, because on average the individual would be earning money on the wheel
c. No, because all the carnival attractions are unfair
d. Need more information
b
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Frictional unemployment refers to:
a. people who spend relatively long periods out of work. b. unemployment related to the ups and downs of the business cycle. c. people who are out of work and have no job skills. d. short periods of unemployment needed to match jobs and job seekers.
Rates of inflation in the hundreds or thousands of percent per year are known as
A) super inflation. B) megainflation. C) hyperinflation. D) overinflation.
One way a government can eliminate a market failure
A) is to regulate the price so that it equals marginal cost. B) is to implement a price floor equal to marginal cost. C) is to regulate the price so that it is below average cost. D) None of the above solutions will eliminate a market failure.
What is true about threats in the game in Scenario 13.15?
A) Simple can change the equilibrium by means of a credible threat; Boring cannot. B) Boring can change the equilibrium by means of a credible threat; Simple cannot. C) Boring can change the equilibrium by means of a credible threat only if it can move before Simple. D) Simple can change the equilibrium by means of a credible threat only if it can move before Boring. E) Neither firm has a credible threat with which to change this equilibrium.