Sequential games are used to analyze
A) second-price auctions.
B) cartels.
C) situations in which one firm acts and other firms respond.
D) firms that are subject to the prisoner's dilemma.
C
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Answer the following statement(s) true (T) or false (F)
1. A negligence standard, with the allowance of contributory negligence, always leads to a socially optimal outcome. 2. Strict liability is the liability that exists when it can be proven beyond a reasonable doubt that the defendant was negligent. 3. Negligence is irrelevant when a strict liability standard is applied. 4. The principle of general average gives a ship's captain an incentive to consider the value of cargo when jettisoning it to prevent a disaster. 5. The doctrine of Respondent Superior contends that an employer is sheltered from torts committed against his employees.
During the 1930s, banks found it hard to solve the asymmetric information problem between borrowers and lenders, because ____
a. Many borrowers lacked adequate collateral b. Changing federal bank regulations created uncertainty c. The fall in the stock of money reduced aggregate demand d. Interest rates had fallen to "liquidity trap" levels
Nominal government purchases were $2226.2 billion in 2008 and rose to $2372.8 billion in 2009. Real government purchases were $1940.6 for 2008 and $1958.0 for 2009, where 2005 was the base year
Calculate the percent change in the chain-weight price index for government purchases (rounded to the nearest percentage point) from 2008 to 2009. A) 2% B) 4% C) 6% D) 8%
Economists favor the use of peak-load pricing since it can
A. improve the equity of the distribution of income. B. enhance the efficiency in the use of scarce resources. C. improve the profit levels of corporations. D. result in lower levels of pollution.