A commitment problem exists when people cannot achieve their goals because:

A. they do not have the first-mover advantage in a sequential move game.
B. they cannot play their dominant strategy.
C. they cannot make credible threats or promises.
D. the payoff matrix is unknown.


Answer: C

Economics

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An increase in technology that enhances labor productivity will likely result in:

A) a decrease in labor employment and an increase in the wage rate. B) an increase in labor employment and an increase in the wage rate. C) a decrease in labor employment and a decrease in the wage rate. D) an increase in labor employment and a decrease in the wage rate. E) employers using less labor and more capital while the wage effect is unknown.

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The difference between a firm's assets and liabilities is its

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Assuming a competitive world, does your country have a comparative advantage in making pizza? You can get your answer by

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