Refer to the above payoff matrix (in years of sentence) for two people (A and B) charged for robbery. Which of the following is the outcome of the dominant strategy without cooperation?
A. A confesses while B does not confess.
B. A does not confess while B confesses.
C. Both A and B confess.
D. Both A and B do not confess.
Answer: C
You might also like to view...
If an agent is risk neutral and a principal is risk averse, which of the following contracts would be efficient in risk bearing?
A) A fixed fee is paid to the agent. B) A fixed fee is paid to the principal. C) An hourly rate is paid to the agent. D) The agent enjoys a share of the profit.
Which of the following activities would be included in GDP?
A. You hire a cleaning service at $40 to clean your house. B. Your roommate pays you $40 to clean the house. C. Your parents send you $40 to hire a house cleaner, and you clean the house and keep the $40 yourself. D. All of these would be included in GDP, since there was a monetary exchange.
What are transfer payments, and how do they affect the calculation of GDP?
If a tax system is progressive, then
A) the average and the marginal tax rates are equal. B) the marginal tax rate is greater than the average tax rate as income rises. C) the marginal tax rate is lower than the average tax rate as income rises. D) the average tax rate is constant, but the dollar amount paid in taxes increases as income increases.