Player 1 and Player 2 are playing a game in which Player 1 has the first move at A in the decision tree shown below. Once Player 1 has chosen either Up or Down, Player 2, who can see what Player 1 has chosen, must choose Up or Down at B or C. Both players know the payoffs at the end of each branch.
What is the equilibrium outcome of this game?
A. Player 1 and Player 2 both choose Down.
B. Player 1 chooses Up and Player 2 chooses Down.
C. Player 1 chooses Down and Player 2 chooses Up.
D. Player 1 and Player 2 both choose Up.
Answer: B
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The objective of a macro environmental analysis is to:
a. Determine the demand for a new product b. Identify the major markets in which a new product might compete c. Determine the optimum price for a new product d. Identify the relevant demand forces, determine their relation, and predict how they might change in the future
If the number of available workers of a particular type increases, which of the following shifts should occur in the labor market for the particular type of labor?
A. Supply of labor should shift to the left. B. Supply of labor should shift to the right. C. Demand for labor should shift to the left. D. Demand for labor should shift to the right.
Countries with small amounts of capital per worker tend to have ________ levels of real GDP per person and ________ levels of average labor productivity.
A. high; high B. low; average C. low; low D. high; low
How has the distribution of income changed in the past few decades?
What will be an ideal response?