Which of the following statements is true?
A. Nash equilibrium exist only in games with dominant strategies.
B. Dominant strategies do not exist in repeated games.
C. Collusive agreements will always break down in repeated games.
D. Games with a known ending date undermine reciprocity strategies.
D. Games with a known ending date undermine reciprocity strategies.
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Before the South Korean financial crisis, sales by the top five chaebols (family-owned conglomerates) were
A) nearly 50% of GDP. B) about 10% of GDP. C) almost 90% of GDP. D) nearly 25% of GDP.
In behavioral economics, the endowment effect refers to
A) most people believe that most wealthy people inherit their wealth. B) many people would be indifferent between being endowed with money or knowledge. C) many people place a higher value on what they own than when they consider purchasing. D) most people respond to tax incentives to provide an endowment for their children.
In calculating income for the Lorenz curve, one factor that is omitted, is
A) capital gains income. B) dividend payments. C) in-kind transfer payments from the government. D) pure economic rent.