Refer to the above payoff matrix (in years of sentence) for two people (Bo and Max) charged for robbery. Which of the following is the outcome of the dominant strategy without cooperation?
A. Bo confesses while Max does not confess.
B. Both Bo and Max do not confess.
C. Bo does not confess while Max confesses.
D. Both Bo and Max confess.
Answer: D
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Assume someone organizes all farms in the nation into a monopoly. Which of the following occurs? i. Consumer surplus decreases. ii. Economic profit increases. iii. A deadweight loss is created
A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
Which of the following is likely to lead to a left shift in the supply curve for labor to a firm?
A) The introduction of labor-saving technology B) The establishment of a new firm nearby that offers higher wages C) An increase in the opportunity cost of leisure D) The introduction of labor-complementary technology
Suppose that with a strictly enforced rent ceiling on rooms of $550 a month, a black market develops. How high could the black market rent be and would the on-campus housing market be fair? Explain your answer
What will be an ideal response?
The phenomenon known as the tragedy of the commons occurs whenever:
a. the private sector owns resources and manages them tragically. b. the government owns resources and manages them tragically. c. there is no ownership of resources, so they become depleted due to lack of management. d. two countries own the same resource and cannot agree on its management.