Collusion is more successful in a game that will continue forever or in a game with an uncertain ending time than in a game with a known ending time
What will be an ideal response?
True. In games with a known final period players will cheat in the final period. This is true because the final period becomes a single period game. By the same reasoning, players will cheat in the period prior to the last period, etc. Thus, when players know the last period, they are more likely to cheat in each period.
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The most effective redistribution programs provide assistance to the hard core poor and transitory assistance to the marginal poor without _____
a. creating dependency on welfare payments b. costing taxpayers too much c. changing the behavior of individuals d. a and c
The difference between disposable income and consumption spending is
a. transfer payments. b. personal taxes. c. net exports. d. personal investment. e. personal saving.
The difference between the economy's potential output and its actual output relative to its potential output at a point in time is called the:
A. trade deficit. B. budget deficit. C. output gap. D. full-employment rate.
Refer to the scenario above. Which country is likely to have the highest rate of poverty?
A) Techland B) Ritzland C) Neoland D) Eduland