The host country has more reasons to restrict foreign direct investment than does the home country.
Answer the following statement true (T) or false (F)
False
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The difference between a Nash equilibrium and a subgame-perfect equilibrium is:
a. the former requires rational play both on and off the equilibrium path but the latter requires rational play only on the equilibrium path. b. the former requires rational play only on the equilibrium path but the latter requires rational play both on and off the equilibrium path. c. Nash equilibria are a subset of the subgame-perfect equilibria. d. nothing; they are synonyms.
Nominal wages can be converted into real wages by
a. multiplying the nominal wages by the CPI. b. adding the CPI to the nominal wages. c. subtracting the CPI from the nominal wages. d. dividing the nominal wages by the CPI.
Which of the following will not produce an outward shift of the production possibilities curve?
A. An upgrading of the quality of a nation's human resources. B. The reduction of unemployment. C. An increase in the quantity of a society's labor force. D. The improvement of a society's technological knowledge.
A game in which all the players are worse off at the end of the game is a
A. negative-sum game. B. positive-sum game. C. dominant strategy game. D. noncooperative game.