Refer to Figure 3.6. Answer the following questions about the game represented in the figure:
a. What type of game is represented by the payoff matrix?
b. Does Terrance have a dominant strategy, and if so, what is it?
c. Does Phillip have a dominant strategy, and if so, what is it?
d. At what outcome or outcomes do the players coordinate?
e. Are there any Nash equilibria, and if so, what, are they?
a. This represents an assurance game.
b. Terrance does not have a dominant strategy.
c. Phillip does not have a dominant strategy.
d. The players coordinate at (Terrance, Phillip) = (Bake, Sing), and at (Terrance, Phillip) = (Shake, Dance).
f. The Nash equilibria occur at (Terrance, Phillip) = (Bake, Sing), and at (Terrance, Phillip) = (Shake, Dance).
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Refer to Figure 29-1. Europe experiences an economic boom. Assuming all else remains constant, this would be represented as a movement from
A) D to A. B) C to B. C) B to A. D) D to C.
__________________ vocally and actively opposed the re-chartering of the Second Bank of the United States
a. Nicholas Biddle b. Henry Clay c. Andrew Jackson d. Alexander Hamilton
If the U.S. has exports of $1.5 trillion and imports of $2.2 trillion, then the U.S
a. sells more overseas then it buys from overseas; it has a trade deficit. b. sells more overseas then it buys from overseas; it has a trade surplus. c. buys more from overseas then it sells overseas; it has a trade deficit. d. buys more from overseas then it sells overseas; it has a trade surplus.
The U.S. dollar exchange rate, e, expressed as Japanese yen per U.S. dollar, will appreciate when:
A. the U.S. Federal Reserve eases monetary policy. B. real GDP in the U.S. increases. C. U.S. consumers increase their preference for Japanese cars. D. real GDP in Japan increases.