A Nash equilibrium occurs when:
a. a unilateral move by a participant makes him better off.
b. one can deviate from the equilibrium and improve the outcome.
c. no one can move from the equilibrium and improve the outcome.
d. participants have an incentive to deviate from the equilibrium.
e. no one is better off.
c
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GDP can be measured by the
A) total value of all sales in the economy. B) total market value of final goods and services produced in the economy. C) total value of all intermediate goods produced in the economy. D) net national product plus investment.
For a kinked demand curve, the marginal revenue curve is:
a. positively sloped. b. a horizontal line. c. a vertical line. d. discontinuous. e. above the demand curve.
If the government decreased urban welfare payments by a dollar for every dollar increase in farm subsidies, which of the following is the likely net effect?
a. An increase in the budget deficit because government spending has increased b. A decrease in the budget deficit because transfer payments are not included in the government's budget c. An increase in the budget deficit because transfer payments have increased d. An increase in the budget deficit because farm subsidies are transfer payments but urban welfare payments are not e. No change in the budget deficit
Explain the difference between the discount rate and the federal funds rate. If the Fed wants to lower one of these rates, which one can the Fed change by issuing an order? Describe in detail how the Fed helps to lower the other rate