The prisoners' dilemma game
A) shows that prisoners are better off if they cooperate.
B) shows it is easy to cooperate.
C) has an equilibrium in which both prisoners are made as well off as possible.
D) would have the same outcome even if the prisoners can communicate and cooperate.
E) has an equilibrium in which one prisoner is made as well off as possible and the other prisoner is made as worse off as possible.
A
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Refer to the scenario above. What is the probability of getting heads?
A) 25% B) 50% C) 75% D) 100%
Suppose a person with automobile collision insurance is more likely to try to drive on an icy road in the middle of winter than that person would be if he or she didn't have automobile collision. This is an example of
A. adverse selection. B. moral hazard. C. the free-rider effect. D. asymmetric information before exchange. E. none of the above
Which of the following could be threatening to an existing monopoly structure?
a. impossible-to-overcome barriers to entry b. the depletion of alternative resources that could be used to produce the good that is being produced by the monopolist c. the extension of years enforcing a patent right d. mergers e. technological innovation that makes the old techniques of producing a good obsolete
A downward shift in the Fed's reaction function is equivalent to:
A. a decline in the Fed's long-term target for inflation. B. a downward shift of short-run aggregate supply. C. an upward shift of short-run aggregate supply. D. an increase in the Fed's long-term target for inflation.