The general message of the folk theorems is:
a. Nash equilibria may not be sustainable over many replications of a game.
b. payoffs that are unambiguously preferred to Nash equilibria may be sustainable over many replications of a game.
c. credible threats may inhibit the achievement of mutually beneficial outcomes over many replications of a game.
d. just plain folk play the best games.
b
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Gertrude Stork's Chocolate Shoppe normally employs 4 workers. When the Chocolate Shoppe hired a 5th worker the Shoppe's total output decreased. Therefore
A) the total output of Gertrude Stork's Chocolate Shoppe is negative. B) the average product of the 5th worker is negative. C) the 5th worker should be hired only if he is willing to accept a wage lower than the wage paid to the other 4 workers. D) the marginal product of the 5th worker is negative.
When considering the demand for money curve, the interest rate
A) is the price of holding money. B) varies negatively with the transactions demand for money. C) will have a positive relationship with the quantity of money demanded. D) is independent of the opportunity cost of money.
Wartime inflation occurs when war requires a country to shift resources away from efficient uses into war-related production
Indicate whether the statement is true or false
Jill and Daniel graduate from college in the same year in economics and physics respectively and start looking for jobs. They are competitors in the job market
Indicate whether the statement is true or false