This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
Given the situation in the matrix shown, we can predict that Firm A's profits will be:
A. $100 million.
B. $200 million.
C. $300 million.
D. $50 million.
Answer: A
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In any year, nominal GDP divided by the GDP chain price index equals real GDP
a. True b. False Indicate whether the statement is true or false
If the FOMC orders the sale of T-bills in the open market, then bank reserves are
a. decreased, but the money supply will remain unchanged. b. decreased, and a multiple contraction of the money supply will occur. c. increased, but the money supply will remain unchanged. d. increased, and a multiple expansion of the money supply will occur.
In a deposit-refund system,
a. the refund component compensatesthe consumer for proper waste disposal or recycling activities b. the deposit component should be set equal to the MSC of illegal waste production c. the costs of monitoring and enforcement are higher than if a pollution charge were used d. actual polluters are not penalized for decisions that pose a risk to the environment
What are the pros and cons of a currency board?
What will be an ideal response?