In a beauty contest game such as predicting the average of respondents choosing a number between 0 and 100
A) the outcome is not normally the Nash equilibrium for the game.
B) the winner usually exhibits level-3 reasoning.
C) the winner must understand the non-rationality of the players.
D) All of the above.
D
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From an initial long-run equilibrium, if aggregate demand grows more slowly than long-run and short-run aggregate supply, then Congress and the president would most likely
A) decrease oil prices. B) decrease taxes. C) increase the required reserve ratio and decrease government spending. D) decrease government spending. E) lower interest rates.
The Chinese policy of one child per family provided McDonald's the opportunity to actively market to:
A) children. B) senior citizens. C) parents. D) none of the above.
Lower marginal tax rates facilitate a higher return to innovative and risk-taking behavior
a. True b. False
An insurance policy is a contract that:
a. benefits the parties if they have the same degrees of risk aversion. b. benefits the parties if both of them are risk neutral. c. benefits the parties if they have different degrees of risk aversion. d. benefits the parties if either of them is risk neutral.