By threatening to lockout the workers, the firm has
a. Eliminated half of the strategies
b. Forced the union to choose the best response in the firm's best interest
c. Made it in the union's best interest to not strike
d. All of the above
d
Use questions 16- 27 use the following setup
Consider a sequential game between a shopkeeper and a haggling customer. The party who moves first chooses either a high price ($50) or low price ($20) and the second mover either agrees to the price or walks away from the deal and neither party gets anything. Ignore costs and assume the customer values the item at $60.
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The larger the portion of a person's total budget spent on a good, the more inelastic the demand for the good
Indicate whether the statement is true or false
According to the Solow model, a benefit of policies to limit population growth might be ________
A) that smaller families are more likely to contribute to technological advances B) that smaller families have better access to birth control methods and devices C) that smaller families might provide each person a larger share of national income D) that smaller families have less need to save, and so enjoy higher consumption
The principal-agent problem:
A. arises from an imbalance of information. B. is caused by the principal having imperfect information about the agent. C. is caused by the principal being unable to perfectly observe the actions of the agent. D. All of these statements are true.
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and the nominal value of the domestic currency in the context of the Three-Sector-Model? a. The GDP Price Index rises and nominal value of the domestic
currency falls. b. The GDP Price Index falls and nominal value of the domestic currency remains the same. c. The GDP Price Index rises and nominal value of the domestic currency remains the same. d. The GDP Price Index rises and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.