Refer to Game Matrix III. In this game,
Game Matrix III
The following questions refer to the game matrix below. Each firm has a choice of advertising, Ads, or not advertising, No ad. The profits each gets depend upon which it chooses.
a. Firm A's dominant strategy is to advertise.
b. Firm A's dominant strategy is not to advertise.
c. Firm B's dominant strategy is to advertise.
d. Firm B has no dominant strategy.
c. Firm B's dominant strategy is to advertise.
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Which one of the following is TRUE about the effects of fiscal policy?
A) A decrease in government spending will decrease aggregate demand. B) A tax change does not have any direct or indirect effects on aggregate demand. C) A decrease government spending will increase aggregate supply. D) An increase in government spending will reduce aggregate demand.
If a purchase contract allows a buyer to accept less than a specified maximum "take" each month, buying a _____ would allow the seller to resell the excess at a _____ price
a. put option; profitable b. put option; predictable c. call option; predictable d. call option; profitable
Refer to the above graph showing the market for a product. Which of the following could not explain the indicated increase in equilibrium price from P 1 to P 2?
An increase in consumer incomes An increase in production costs An increase in the price of a substitute product A decrease in the price of a complementary product
Use the Aggregate Supply - Aggregate Demand model to determine which of the following will lead to higher aggregate output.
A. A tax increase B. A spike in world oil prices C. A cut in interest rates D. A cut in government spending