(Consider This) The prisoner's dilemma reveals that:
A. collusive agreements will always fail.
B. the price leadership model does not work.
C. nonprice competition is more profitable than price competition.
D. sometimes when individuals act independently in their own self-interest, everyone is worse
off than if they had cooperated.
Answer: D
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Which of the following observations is true?
A. Free markets will achieve all of society’s goals. B. The ability to buy goods is divided equally among consumers. C. The market leads to efficiency in production through the profit motive. D. The market system encourages firms to use inputs wastefully.
If the interest rate increases, then the:
a. economy will move to a new point along the existing consumption function. b. consumption function will shift up. c. consumption function will shift down. d. investment demand curve will shift up. e. economy will move to a new point along the existing investment demand curve.
Suppose your friends take you out for dinner on your birthday and you have a much better time than you would have had doing anything else. There is still an opportunity cost, even though they will not let you pay for anything
a. True b. False
A country's current account includes which of the following?
a. sales of assets to other countries b. purchases of assets from other countries c. all current automatic payments between countries d. the country's trade balance e. the balance available in the government's Treasury account