If all players in a game have a dominant strategy, then there can only be one pure strategy Nash equilibrium to the game.
Answer the following statement true (T) or false (F)
True
Rationale: The only Nash equilibrium is one where everyone plays his/her dominant strategy.
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The premium on a college education increases when
(a) the market demand for knowledge and skilled workers decreases, and all else is held constant. (b) the market supply of knowledge and skilled workers increases, and all else is held constant. (c) the growth in the demand for knowledge and skilled workers outpaces the growth in supply. (d) the growth in the supply of knowledge and skilled workers outpaces the growth in demand.
An initial increase in investment spending will generate:
a. More of an increase in income than the initial increase because of the multiplier effect b. Less of an increase in income than the initial increase because of the multiplier effec c. Less of an increase in income than the initial increase because of the net export effect d. More of an increase in income than the initial increase because of the net export effect
Exhibit 14A-1 Aggregate demand and supply model
Beginning from long-run equilibrium at point E1 in Exhibit 14A-1, the aggregate demand curve shifts to AD2 . The real GDP and price level (CPI) in short-run equilibrium will be:
A. $12 billion and 200. B. $8 billion and 250. C. $8 billion and 150. D. $12 billion and 250.
The demand curve for labor of a monopolist
A) is horizontal even though the demand curve for labor for a competitive firm is downward sloping. B) slopes down for the same reason as the demand curve for labor of a perfectly competitive firm. C) slopes down because of the law of diminishing marginal product and because the monopolist must lower prices to sell additional units of the good. D) slopes upward because monopolists use more capital than do perfectly competitive firms.