John Nash, the mathematician responsible for the Nash equilibrium, also proved that any reasonable bargaining outcome would
a. Split the gains from trade
b. Allocate the gains from trade to the seller
c. Allocate the gains from trade to the buyer
d. All of the above
a
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The person most likely to receive a payment from a corporation in a year of losses is the
A) bondholder. B) common stockholder. C) preferred stockholder. D) investment banker.
Human capital differs from physical capital in that
A. human capital is intangible. B. human capital is tangible. C. physical capital is intangible. D. human capital has no cost to acquire.
A good in the U.S. costs $20 . The same good costs 150 pesos in Mexico. If the nominal exchange rate is 10 pesos per dollar, what is the real exchange rate?
a. 4/3 so the good is more expensive in the U.S. b. 4/3 so the good is more expensive in Mexico c. 3/4 so the good is more expensive in the U.S. d. 3/4 so the good is more expensive in Mexico
Voluntary trade promotes economic progress because it
a. encourages individuals to become self-sufficient. b. benefits buyers at the expense of sellers. c. makes larger outputs possible as a result of specialization. d. moves goods, services and resources from people who value them more to individuals who value them less.