Answer the following statement(s) true (T) or false (F)
1. In the prisoners’ dilemma game, the prisoners can talk to each other about their decision.
2. The firms in an oligopoly often behave like the prisoners in the prisoners’ dilemma.
3. The arms race between the United States and the former Soviet Union is a classic
example of the prisoners’ dilemma.
4. The tit-for-tat strategy is commonly used in one-shot games between oligopolists.
5. The snob effect is a positive network externality.
1. FALSE
2. TRUE
3. TRUE
4. FALSE
5. FALSE
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How are the current account and the financial account related?
What will be an ideal response?
According to academic research, securities prices reflect new information
A) within a few minutes. B) within a day. C) within a week. D) within a month.
If a person does not pay all costs associated with a particular resource-using activity, then
A) the external costs of the activity are greater than the private costs of the activity. B) the social costs of the activity are greater than the private costs of the activity. C) the external costs of the activity are greater than the internal costs of the activity. D) the full costs of the activity are the sum of private costs plus internal costs.
Informing people of social norms is likely to get:
A. more people to act that way, which is always positive. B. more people to act that way, which can be a problem if policymakers are trying to change typical behavior. C. more people to act that way, which is always negative. D. less people to act that way, because people like to be unique.