One way to ensure cooperation in an infinitely repeated simultaneous game is
A) to always play the dominant strategy.
B) to punish the player that reneges on agreements.
C) to never punish any player.
D) to always punish all players.
B
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A recent study has revealed that the consumption of coffee is injurious to health. This led to a sharp decline in coffee consumption worldwide. If coffee production accounts for 40% of Richland's GDP, this will lead to a(n)________
A) rise in Richland's inflation rate B) increase in the real interest rate in Richland C) rise in Richland's demand for labor D) fall in Richland's demand for labor
Refer to the information provided in Figure 12.4 below to answer the question(s) that follow.
Figure 12.4There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S0 and D0.Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, a new general equilibrium will eventually be reached in sector X with a price of ________ and a quantity of ________.
A. P1; Q0 B. P1; Q1 C. P0; > Q1 D. P0; Q0
Aimee sells hand-embroidered dog apparel over the Internet. Her annual revenue is $128,000 per year, the explicit costs of her business are $42,000, and the opportunity costs of her business are $30,000. What is her economic profit?
A) $12,000 B) $56,000 C) $86,000 D) $98,000
Refer to the table. If the amounts of GDP supplied at the price levels shown (in descending order) are $45, $43, $40, $37, and $31, the equilibrium level of real GDP will be:
Answer the question on the basis of the following table for a particular country in which C is
consumption expenditures, I g is gross investment expenditures, G is government expenditures,
X is exports, and M is imports. All figures are in billions of dollars. Each question is
independent of other question using the same table, unless otherwise stated.
A. $37 billion.
B. $35 billion.
C. $26 billion.
D. $43 billion.