Billy developed an economic model to describe the behavior of a stock market index. His model predicts that the index increases on Mondays and declines on the other days of the week. What can be said about Billy's model?
A) The model's predictions are ambiguous and cannot be tested.
B) The model's predictions are not ambiguous and cannot be tested.
C) The model's predictions are ambiguous and can be tested.
D) The model's predictions are not ambiguous and can be tested.
D
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Mutually Assured Destruction was a standing policy during the Cold War, in which the United States and the USSR maintained and expanded nuclear arsenals beyond practical levels. What could explain such a phenomenon?
A) insane public officials who were bent on world domination B) a prisoner's dilemma C) a leader-follower type game D) tacit collusion
The figure above shows a monopolistically competitive firm in the short run. During the transition to the long run, the demand curve will shift ________ and the MR curve will shift ________
A) leftward; leftward B) leftward; rightward C) rightward; leftward D) rightward; rightward
Refer to the diagram above, which represents a country's supply and demand for an internationally traded good. If PW is the world price, and a foreign country engages in dumping by selling at P2, total domestic production will ________ to ________
A) increase; Q2 B) decrease; zero C) increase; Q5 D) increase; Q3
Which one of the following is a way to get out of a repeated Prisoner's Dilemma Nash Equilibrium?
a. Do not be forgiving b. Be forgiving c. Punish the competitors severely forever d. All of the above