Why does a prisoner's dilemma lead to a noncooperative equilibrium?
A) because each player had agreed before the game started to minimize the harm that he can inflict on the other players
B) because each player is uncertain how other players will play the game
C) because players must choose from a limited number of non-dominant strategies
D) because each rational player has a dominant strategy to play a certain way regardless of what other players do
Answer: D
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Which of the following is a condition for efficiency in the output market?
A) MRT = MPL/MPK B) The marginal rate of substitution is the same for all customers. C) The marginal rate of technical substitution must be the same for all producers. D) The marginal rate of transformation must equal the marginal rate of substitution.
For any given tax, the revenue generated is:
A. larger in markets with price-elastic demand and supply. B. the same regardless of price elasticity. C. always maximized in markets with price-elastic demand and supply. D. smaller in markets with price-elastic demand and supply.
Regulation Q, now no longer operative, set a
a. maximum on the interest rate that banks and savings and loans could pay depositors b. maximum on the interest rate that banks and savings and loans could charge on consumer loans c. maximum amount that banks and savings and loans could loan out of excess reserves d. legal reserve requirement for savings and loans that was 1.5 times the requirement for banks e. value for the potential money multiplier that could not exceed 1
The value of Austria's exports minus the value of Austria's imports is called
a. Austria's net exports. b. Austria's net imports. c. Austria's foreign portfolio investment d. Austria's foreign direct investment.