In games without dominant strategies the Nash equilibrium can be found by using:
a. the cooperation vs. grim trigger strategy.
b. the chain-store paradox.
c. the principle of backward induction.
d. the method of iterated elimination of dominated strategies.
D
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If real disposable income increases, the average propensity to save will
A) decrease. B) increase. C) remain constant. D) initially increase, and then decrease.
In situations where people make decisions with perfectly predictable consequences, traditional economic models cannot explain:
A. why people experience regret. B. what the rational choice should be. C. how people maximize their utility. D. how risk aversion influences decisions.
All of the following are reasons average workers in the United States today produce more than their counterparts a century ago EXCEPT that the modern worker:
A. is better educated. B. has more physical capital to work with. C. has better technology to work with. D. works longer hours.
What is the percentage of income received by the lower three quintiles on line J?
