Why does a prisoner's dilemma lead to a noncooperative equilibrium?
A) because players must choose from a limited number of non-dominant strategies
B) because each player is uncertain how other players will play the game
C) because each player had agreed before the game started to minimize the harm that he can inflict on the other players
D) because each rational player has a dominant strategy to play a certain way regardless of what other players do
D
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Factors that led to worsening conditions in Mexico's 1994-1995 financial markets, but did not lead to worsening financial market conditions in East Asia in 1997-1998 include
A) rise in interest rates abroad. B) bankers' lack of expertise in screening and monitoring borrowers. C) deterioration of banks' balance sheets because of increasing loan losses. D) stock market decline.
Unemployment resulting from a mismatch of workers' skills and job requirements is called
A) frictional unemployment. B) structural unemployment. C) seasonal unemployment. D) cyclical unemployment.
Which of the following statements about a perfectly competitive market are TRUE?
I. The perfectly competitive industry faces an upward sloping labor supply curve. II. The individual firm in a perfectly competitive industry faces a perfectly elastic labor supply curve. A) I only B) II only C) both I and II D) neither I nor II
Notes are debt securities which have a maturity period of:
a. 0-5 years. b. 10-15 years. c. 0-1 year. d. 10-20 years. e. 1-10 years.