Which game does the Cournot model most resemble and why?
a. the Battle of the Sexes because firms need to coordinate their outputs.
b. the Battle of the Sexes because firms disagree on which outcome is best.
c. the Prisoners Dilemma because firms don't maximize joint payoffs in equilibrium.
d. the Prisoners Dilemma because firms play dominant strategies.
c
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The redistribution of income creates the big tradeoff, which is a tradeoff between ________
A) income and wealth B) equity and efficiency C) rich and poor D) Supplementary Security Income and the Food Stamp program
Forces that cause long-run average cost to fall as output expands are known as
a. returns to scale. b. scale efficiencies. c. economies of scale. d. optimizing forces.
________ can counteract a currency depreciation
A) Autonomous monetary policy tightening B) Purchase of international reserves C) Autonomous monetary policy easing D) Capital controls
From the "economic perspective," people make purposeful decisions based on hypotheses.
Answer the following statement true (T) or false (F)