Any non-credible threat that is part of a Nash equilibrium in a sequential game cannot be played along the Nash equilibrium path.
Answer the following statement true (T) or false (F)
True
Rationale: Nash equilibrium non-credible threats are threats that, because they are taken seriously in the Nash equilibrium (that is not subgame perfect), will never have to be played. Put differently, the threat is taken seriously and alters equilibrium behavior of the other player such that the other player does not put himself in the position of having the threat executed.
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The activities in which U.S. workers are relatively more productive
A) pay higher wages. B) are those in which the United States has a comparative advantage. C) are at risk of disappearing from the United States when NAFTA is completed. D) Both answers A and B are correct.
The aggregate supply curve relating the price level to real GDP has three distinguishing segments. Which one of the following indicates the segments?
a. The horizontal segment reflects the increasing pressure on the price level as firms bid for resources. The upward-sloping segment reflects the availability of unused resources. The vertical segment reflects the full employment of all resources. b. The horizontal segment reflects the availability of unused resources. The upward-sloping segment reflects the full employment of all resources. The vertical segment reflects the increasing pressure on the price level as firms bid for resources. c. The horizontal segment reflects the full employment of all resources. The upward-sloping segment reflects the increasing pressure on the price level as firms bid for resources. The vertical segment reflects the availability of unused resources. d. The horizontal segment reflects the availability of unused resources. The downward-sloping segment reflects decreasing pressure on the price level as firms bid for resources. The vertical segment reflects the full employment of all resources. e. The horizontal segment reflects the availability of unused resources. The upward-sloping segment reflects increasing pressure on the price level as firms bid for resources. The vertical segment reflects the full employment of all resources.
The primary gain from international trade is
A. extra revenue. B. increased employment in the domestic export sector. C. increased employment in the domestic import sector. D. more goods than would be attainable through domestic production alone.
Depreciation is all of the following, except:
A. The difference between GDP and NDP B. The difference between gross investment and net investment C. The accumulation of capital stock D. The consumption of fixed capital