The game theory approach to the analysis of oligopoly assumes that oligopolists
a. ignore their interdependence.
b. behave with little forethought.
c. do not take their businesses seriously.
d. act strategically.
d
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Refer to Figure 17-4. Which of the following is true at W0?
A) The substitution effect is larger than the income effect. B) The income effect and the substitution effect are equal. C) The income effect is larger than the substitution effect. D) The supply curve is positively sloped.
For something to satisfy the medium-of-exchange function of money, it must be
A) backed by gold. B) readily exchangeable for other goods. C) issued by a central bank. D) an inherently valuable commodity.
Carlos Silva, a Colombian singer, goes on tour to the United States for one month, following high American demand for his live shows. Assuming that all the show's expenses are paid by the U.S. promoters, other things equal, the U.S. tour will bring about:
a. a decreased supply of Colombian pesos in the foreign exchange market. b. an increased supply of American dollars in the foreign exchange market. c. an increased supply of Colombian pesos in the foreign exchange market. d. a decreased demand for Colombian pesos in the foreign exchange market. e. an increased demand for American dollars in the foreign exchange market.
Even though participants in the economy are motivated by self-interest, the "invisible hand" of the marketplace guides this self-interest into promoting general economic well-being
a. True b. False Indicate whether the statement is true or false