A service like CARFAX, which provides a used car buyer with the complete history of a used car, is profitable because of the problem of asymmetric information
a. True
b. False
A
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Until the last half of the twentieth century, most people did not have health insurance
a. True b. False
Social Security benefits alone assure an adequate income for the elderly
Indicate whether the statement is true or false
Mexico and the members of OPEC produce crude oil. Realizing that it would be in their best interests to form an agreement on production goals, a meeting is arranged and an informal, verbal agreement is reached. If both Mexico and OPEC abide by the agreement, then OPEC's profit will be $200 million and Mexico's profit will be $100 million. If both Mexico and OPEC cheat on the agreement, then OPEC's profit will be $175 million and Mexico's profit will be $80 million. If only OPEC cheats, then OPEC's profit will be $185 million, and Mexico's profit will be $60 million. If only Mexico cheats, then Mexico's profit will be $110 million, and OPEC's profit will be $150 million. You may find it helpful to fill in the payoff matrix below. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q384g1.jpg" alt="" style="vertical-align: 0.0px;" height="203" width="377" />In the Nash equilibrium of this game:
A. OPEC cheats on the agreement and Mexico abides by the agreement.
B. both Mexico and OPEC cheat on the agreement.
C. both Mexico and OPEC abide by the agreement.
D. Mexico cheats on the agreement and OPEC abides by the agreement.
Suppose that only one curve shifts. If you observe that the equilibrium price increased while the equilibrium quantity decreased, then the market experienced a(n):
A. decrease in supply. B. increase in demand. C. increase in supply. D. decrease in demand.