In a game, a Nash equilibrium is reached only if the players:
A) understand the game and the payoffs associated with each strategy.
B) follow a mixed strategy.
C) use backward induction method to develop their strategies.
D) have no best response for the choices made by other players.
A
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The Fed can reduce the money supply by reducing
A) the currency—deposit ratio. B) the monetary base. C) reserve requirements. D) the discount rate.
The fastest-growing areas for state expenditures are
A. Transportation and public safety. B. Education and welfare. C. Prisons and welfare. D. Sewage and trash service.
Profit maximization requires that
A. equal amounts of each input are employed. B. the amount of one input hired divided by the amount of another input hired equals the total costs of the first input hired divided by the total costs of the second input. C. the marginal factor cost of every input equals that input's marginal physical product. D. the marginal factor cost of every input equals that input's marginal revenue product.