In the game in Scenario 13.5,
A) there is one equilibrium: for both to expand West.
B) there is one equilibrium: for both to expand South.
C) there are two equilibria: either can expand in the West, and the other expands in the South.
D) there is only a mixed strategies equilibrium.
E) all four outcomes are equilibria.
C
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Following the 2007-2009 financial crisis, many people feared that Greece might leave the euro and resume using the drachma. If that happened, the drachma might be worth less than the euro
When using fiat money like the drachma, the key to acceptance is that households and firms have confidence that if they accept drachma in exchange for goods and services, the drachma will not lose much value during the time they hold them. If sellers were not willing to accept the drachma in exchange for goods and services, the drachma would not serve as A) a medium of exchange. B) fiat money. C) legal tender. D) a unit of account.
Over the period 1960-2000, France grew ________ than the United States economy
A) 2 % slower. B) 2% faster. C) more than 2% slower. D) less than 2% faster. E) more than 2% faster.
Along the elastic range of a demand curve, a decrease in price causes:
a. no change in total revenue. b. a decrease in total revenue. c. an increase in total revenue. d. an unpredictable change in total revenue.
Senator Blacklung represents a state that grows a significant amount of tobacco. Not only do many of his constituents work for businesses in this industry, but the tobacco firms also make generous contributions to his reelection campaign. According to public choice theory, which of the following bills would Senator Blacklung be most likely to support?
a. a bill proposing an increase in the tax on cigarettes to fund urban renewal programs across the nation b. a bill that would provide substantial subsidies for tobacco growers c. a bill proposing increased funding for a national antismoking awareness campaign financed by an increase in the tax on cigarettes d. a bill that would prohibit senators from accepting campaign contributions from firms who are involved in the production or sale of tobacco products