A situation in which each firm selects its best action, given what its rivals are doing, is called a
A) Nash equilibrium.
B) Cooperative equilibrium.
C) Stackelberg equilibrium.
D) zero sum game.
A
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The European Union is seen as a less than optimal currency area because
A) of a lack of labor mobility and fiscal integration. B) of a lack of fiscal integration and capital mobility. C) of disagreements over fiscal policy and trade restrictions. D) of the national identity lost with the euro.
The Apple Watch was designed by Apple in the United States, manufactured in factories in Asia, and sold throughout the world. Many other firms, both American and foreign, began to try to develop alternatives to the Apple Watch. The Apple Watch is an example of American comparative advantage in:
A. consumerism. B. hand production. C. mass production. D. innovation.
One of the most significant barriers to economic growth in the world's poorest nations is
A. political freedom. B. dead capital. C. environmental issues. D. foreign government interference.
If firms have to account for external costs in production, then they will produce an output level that is ________ the efficient level.
A. below B. at C. above D. either above or below