Refer to the following game.Firm AFirm B??Low PriceHigh Price?Low Price(10,9)(15,8)?High Price(-10,7)(11,11)What are the Nash equilibrium strategies for firm A and firm B, respectively, in a one-shot game?
A. (low price, low price) and (high price, high price)
B. (high price, high price)
C. (low price, high price)
D. (low price, low price)
Answer: D
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The demand for dollars in the foreign exchange market will decrease and hence the demand curve for dollars will shift leftward if
A) the U.S. interest rate differential decreases. B) the expected future exchange rate rises. C) the exchange rate for the dollar rises. D) the U.S. interest rate differential increases.
A guild is
A) an organization of producers that limits the amount of a good produced. B) a nation that is a free-market benchmark. C) a group of independent producers competing with each other. D) a group of nations who agree not to compete with each other.
As an economy accumulates more capital per worker, labor productivity:
a. increases and the standard of living grows. b. decreases and the standard of living falls. c. decreases and the standard of living grows. d. increases and the standard of living falls.
If the price of a good falls by 10% and the percentage increase in the total amount consumers spend on the good is 5%, then the good is
A. elastic. B. inelastic. C. perfectly inelastic. D. unit elastic.