Which of the following is true?
A. In an infinitely repeated game, collusion is always a Nash equilibrium.
B. In a finitely repeated game with a certain end period, collusion is unlikely because effective punishments cannot be used during any time period.
C. All of the statements associated with this question are correct.
D. None of the answers is correct.
Answer: B
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Suppose the price of gold is initially 300 U.S. dollars per ounce in New York and 450 Canadian dollars per ounce in Toronto, Canada. If the law of one price holds for gold, the nominal exchange rate is ________ Canadian dollars per U.S. dollar. If Canada experiences inflation, such that the price of gold rises to 510 Canadian dollars per ounce, but the U.S. does not experience any inflation, the nominal exchange rate would be ________ Canadian dollars per U.S. dollar.
A. 0.67; 0.59 B. 1.70; 1.50 C. 0.59; 0.67 D. 1.50; 1.70
Emissions permits allow polluters to pay for the right to pollute a specified amount.
Answer the following statement true (T) or false (F)
In the text, the key question in the "economics of a business" is
A) whether the need to grow revenues is being met. B) should the firm be in the business in which it is operating. C) whether the firm faces rising labor costs. D) can the firm affect its market share.
In the U.S. the number of households is:
a. Growing b. Staying the same c. Decreasing slowly d. Decreasing at a fast rate