Answer the following questions true (T) or false (F)
1. Natural resource cartels such as OPEC are inherently unstable because their members operate with excess capacity and have an incentive to cheat on their output quotas.
2. Because many business situations are repeated games, firms may be able to avoid the prisoner's dilemma and implicitly collude to keep prices high.
3. Firms are more likely to find themselves in a prisoner's dilemma in sequential games as opposed to simultaneous games.
1. TRUE
2. TRUE
3. FALSE
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In the market for Canadian dollars measured in US dollars, the demand for US dollars is
a. The supply of Canadian dollars b. The demand for Canadian Dollars c. The supply of US dollars d. None of the above
The production possibilities curves illustrated in Figure 35.2 reveal that
A. The United States has no comparative advantage. B. The United States has an absolute advantage in both goods. C. Mexico has a comparative advantage in baseballs. D. Mexico has no comparative advantage.
The accuracy of the unemployment rate is criticized because:
A. people under 16 years of age and over 70 years of age are excluded from the data. B. people who would like to work but have given up trying to find work are not included in the number of unemployed people. C. unemployed homemakers and students who are not actively seeking employment are not included in the number of unemployed people. D. it fails to indicate how many people work at more than one job.
M1 includes
A) currency in circulation, checking account deposits in banks, and holdings of traveler's checks. B) currency in circulation, savings account balances, and checking account deposits in banks. C) currency in circulation, savings account balances, checking account deposits in banks, and holdings of traveler's checks. D) coins, savings account balances, traveler's checks.