Answer the following statement(s) true (T) or false (F)
1. A Cournot equilibrium arises when one player announces his strategy before the other.
2. The Stackelberg equilibrium of a sequential game must also be a Nash equilibrium.
3. In a sequential game, guaranteed commitment to a strategy will make a player worse off.
4. A merger between Gateway, a manufacturer of computers, and Logitech, a manufacturer of components for computers, would be an example of horizontal integration.
5. The Sherman Act of 1890 and the Clayton Act of 1914 gave courts the power to prevent mergers that reduce competition and provided clear criteria to apply in determining when a merger would do so.
1. False
2. False
3. False
4. False
5. False
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Which of the following government activities is motivated by a concern about efficiency? Check all that apply.
A. Breaking up Standard Oil (which once owned 90% of all oil refineries) into several smaller companies B. Imposing higher personal income tax rates on people with higher incomes C. Providing some poor people with vouchers that can be used to buy food D. Regulating cable TV prices E. Prohibiting smoking in public places F. Instituting laws against driving while intoxicated
When calculating the factors which have led to economic growth over the last century, technological change is calculated as:
A. the rate of change of the capital-output ratio. B. the increased productivity of capital. C. a residual, inferred as the leftover growth after accounting for the contributions of other factors. D. the ratio of the marginal products of capital and labor. E. the rate of growth of the output to land ratio.
A corporation’s authority to act and its liability for those actions is, with respect to the firm’s owners,
a) proportional. b) one and the same. c) joint and several. d) separate and apart.
Consider the demand functions: A) Qd = 250 - 2P B) Qd = 300 - 3P. Which of the demand functions reflects a higher level of consumer incomes?
A) A B) B C) A and B reflect the same consumer incomes. D) More information is needed.