Refer to the scenario above. Suppose Pat can impose a fine of $70 if Joe chooses to keep the money and the cost of imposing such a fine to Pat is $10. Which of the following is likely to happen if Pat is known to be vengeful?
A) Joe will choose to split the money into two parts if Pat gives it to him.
B) Joe will choose to keep the entire money for himself if Pat gives it to him.
C) Pat will not give the money to Joe.
D) An unique equilibrium will not occur.
A
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A political system that promotes the free and open exchange of ideas:
A. will not have well-defined property rights. B. slows the development of new technologies and products. C. is detrimental to economic growth. D. increases average labor productivity.
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A. included in GDP at cost. B. excluded from GDP because they are not sold in markets. C. excluded from GDP because they are publicly provided. D. included in GDP at market prices.
If the marginal cost for Dinky's Donuts to advertise one additional day each week in the local newspaper is $200, then Dinky's Donuts should advertize that additional day
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