A and B form a coalition and share the value of the payoffs it produces. Their coalition is individually rational if:
a. the core is blocked.
b. individual payoffs exceed the respective values produced by A and B.
c. payoffs to both are equal to their respective values.
d. the core is empty.
B
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In the simple Keynesian cross model with no government or foreign sectors, the value of the multiplier is defined as
A) 1/(MPC - 1). B) 1/(1 - MPC). C) 1/(MPC + 1). D) 1/MPC.
The number of units of developing country currency required to purchase a basket of goods and services in a developing country that costs one dollar in the U.S. is given by
a. GNI price deflator. b. Human Development Index ranking. c. purchasing power parity. d. the exchange rate.
A profit-maximizing monopolist never produces along the __________ portion of the demand curve because marginal revenue is __________ there
a. elastic; positive b. elastic; negative c. inelastic; negative d. inelastic; positive e. inelastic; zero
What are the fundamentals of Coasian reasoning?