Refer to the scenario above. In the dominant strategy equilibrium, the payoff to Firm A is ________
A) $1.2 million
B) $3.0 million
C) $3.5 million
D) $2.5 million
C
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Scarcity is a situation in which
A) people cannot satisfy all their wants. B) most people can get only bare necessities. C) people can satisfy all their wants. D) some people can get all they want and some cannot.
When the Fed decides to enact expansionary monetary policy, the supply of loanable funds:
A. and the demand for loanable funds both decrease. B. and the demand for loanable funds both increase. C. increases, while the demand for loanable funds decreases. D. decreases, while the demand for loanable funds increases.
Hold-up:
A. mitigates worker shirking. B. makes spot exchange efficient. C. solves the principal-agent problem. D. is a hazard associated with relationship-specific exchange.
The period in the U.S. economy from 1995 to 2009 is characterized by:
A. a higher trend rate of saving. B. a higher natural rate of unemployment. C. a higher trend rate of productivity growth. D. the end of the business cycle.