The prisoners' dilemma is an important game to study because
a. most games present zero-sum alternatives.
b. it identifies the fundamental difficulty in maintaining cooperative agreements.
c. strategic decisions faced by prisoners are identical to those faced by firms engaged in competitive agreements.
d. all interactions among firms are represented by this game.
b
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If the factor price equalization theorem is true then, eventually, U.S. wages will fall to the level found today in the least developed countries of the world
Indicate whether the statement is true or false
Any bank that uses deposits to make loans: a. operates on a 100 percent reserve system
b. operates on a fractional reserve system. c. does not operate on a reserve system. d. does not keep reserves in its vaults. e. charges an interest rate determined by the reserve ratio.
Figure 3-23
Refer to . It is apparent from the figure that
a.
the good is inferior.
b.
the demand for the good decreases as income increases.
c.
the demand for the good conforms to the law of demand.
d.
All of the above are correct.
A tariff is
A) a foreign bond. B) an order for foreign goods that have not yet been delivered. C) a barter arrangement between importers and exporters. D) a tax on imported goods. E) a restriction on the quantity of imported goods allowed into the country.