A game in which each player has a dominant strategy of defecting, and each ends up worse off than if they had both cooperated is called
A) a pure coordination game.
B) a prisoner's dilemma game.
C) an assurance game.
D) a battle of the sexes game.
B
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Higher rates of inflation reduce spending because:
A. the Fed reacts to the higher inflation by lowering interest rates. B. the real value of money increases. C. the reduction in wealth, resulting from the reduced real value of money, restricts spending. D. resources are redistributed from low-spending households to high-spending households.
If it costs View Your World, a high-end window manufacturer, $26 per window to install a higher quality glass in its windows and consumers will pay an additional $15 per window for the improvement, which of the following is true?
A) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost. B) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost. C) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost. D) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost.
Which of the following is an example of a transfer payment?
a. wages paid to military personnel
b. benefits paid to Social Security recipients
c. purchase of aircraft by the Department of Defense
d. payments made to a contractor for construction of a highway
All of the following variables are used to calculate total profit except
A. output. B. price. C. AVC. D. ATC.