In the Nash equilibrium of a prisoner's dilemma:
A. there is unrealized opportunity for both to gain.
B. both players have equal payoffs.
C. there is no cash left on the table.
D. total economic surplus is maximized.
Answer: A
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Cyclical unemployment results from
A. technological change. B. the decreasing relative importance of goods and the increasing relative importance of services in the U.S. economy. C. a deficiency of spending on goods and services. D. the everyday dynamics of a free labor market, with workers voluntarily changing jobs.
Refer to Table 21.3. What are the median income and the mean income for Marklar. Are they the same?
What will be an ideal response?
For an addictive drug such as heroin, if the price of heroin increases, then
A) the quantity demanded never changes. B) the quantity demanded will decrease by a relatively large amount. C) the quantity demanded will actually increase. D) the quantity demanded will decrease by a relatively small amount.
Which of the following financial institutions pool deposits of customers and use the money to buy a portfolio of stocks or bonds or both?
A. Thrifts B. Brokerage firms C. Mutual funds D. Investment banks