What is the Nash equilibrium of this game?
a. Both the vendors price high
b. Both the vendors price low
c. Vendor A prices high, vendor B prices low
d. Vendor B prices high, vendor A prices low
b
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To decrease anxiety in its most accomplished teachers, a school decides to offer them tenure, to help them concentrate on teaching better. Instead it notices that even the best of the teachers started to get sloppy with their work. The school did not foresee
a. Adverse selection b. Moral hazard c. All of the above d. None of the above
An increase in demand for French fries will cause equilibrium wage rates:
a. and quantities of potato workers hired to rise. b. and quantities of potato workers hired to fall. c. to rise and quantities of potato workers hired to fall. d. to fall and quantities of potato workers hired to rise. e. and quantities of potato workers hired to stay the same.
Congress relies on economists at the Congressional Budget Office to
a. enforce the nation's antitrust laws. b. set the nation's monetary policy. c. provide evidence that incumbent members of Congress are performing well in their jobs. d. provide independent evaluations of policy proposals.
Economic growth causes the PPF to
A) shift leftward. B) shift rightward. C) remain constant. D) go from a straight line to a curve.