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
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Which antitrust law prohibited firms from buying stock in competitors and from having directors serve on the boards of competing firms?
A) the Sherman Act B) the Robinson-Patman Act C) the Clayton Act D) the Securities and Exchange Act
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.
The difference between a firm's assets and liabilities is its
A) accounting profit. B) economic profit. C) net worth. D) implicit costs.
Assuming a competitive world, does your country have a comparative advantage in making pizza? You can get your answer by
a. observing if your country makes more pizza than any other country b. comparing pizza prices in other countries c. calculating the opportunity cost of a pizza in your country d. comparing the opportunity cost of producing pizza in your country with the opportunity cost of producing pizza in other countries e. comparing your country's terms of trade to the terms of trade in other countries