What is a dominant strategy equilibrium?
What will be an ideal response?
When a player has the same best response to every possible strategy of the other players, then we say that the player has a dominant strategy. A combination of strategies is a dominant strategy equilibrium if each strategy is a dominant strategy.
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Settlers often received 50 acres of land for each person whose passage they paid to America. This was known as
a. a special purpose grant. b. an entailment. c. the headright system. d. planter's shares.
The official poverty threshold line is adjusted annually for
a. income taxes. b. inflation. c. average household size. d. average family size.
An increase in the number of consumers, all else held constant, will shift the
a. supply curve leftward. b. demand curve leftward. c. supply curve to the right. d. demand curve to the right.
The government wishes to close an inflationary gap by reducing real GDP by $400 billion. Assuming a tax multiplier of 4 and an income multiplier of 5, which of the following policy prescriptions would reduce the inflationary gap by $400 billion?
a. Decreasing government spending by $400 billion and increasing taxes by $400 billion. b. Decreasing government spending by $160 billion and decreasing taxes by $100 billion. c. Decreasing government spending by $40 billion and decreasing taxes by $40 billion. d. Decreasing government spending by $80 billion and keeping taxes the same. e. Doing absolutely nothing to the economy.