Refer to Table 14-4. How are the firms in this advertising game caught in a prisoner's dilemma?
A) They are not in a prisoner's dilemma because there is one clear strategy for each.
B) They would be more profitable if they refrained from advertising but each fears that if it does not advertise, it will lose customers.
C) Only the first mover is caught in a prisoner's dilemma because the second has a chance to observe and respond.
D) Since each firm is uncertain about the other's behavior, each will adopt a wait-and-see attitude which results in no increase in market share and no new customers.
B
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The demand for money curve is shown in the figure above. What could shift the demand for money curve rightward from the curve illustrated in the figure above?
A) a decrease in real GDP B) a decrease in the supply of money C) a fall in the nominal interest rate. D) an increase in the price level E) a fall in the real interest rate
Cost-push inflation might initially result from
A) the use of new technology. B) a decrease in the quantity of money. C) an increase in the cost of resources. D) an increase in the quantity of money. E) an increase in government expenditure.
If older employees are being paid less than their value to the firm, their compensation is being backloaded
Indicate whether the statement is true or false
Changing prices cause changes in the supply of a good and therefore result in movements along a given supply curve
a. True b. False Indicate whether the statement is true or false