An agreement among firms to charge the same price or otherwise not to compete is called
A) a payoff matrix.
B) a subgame-perfect equilibrium.
C) a Nash equilibrium.
D) collusion.
Answer: D
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Suppose the annual growth rate of GDP in Belize is 3.5 percent. In 20 years, GDP in Belize will double
A) 1 time. B) 1.5 times. C) 3.5 times. D) 7 times.
A government policy that taxes saving in order to discourage saving and encourage spending will
A) slow economic growth. B) speed economic growth. C) create a greater incentive for people to specialize. D) strengthen people's property rights. E) increase the growth rate of capital.
The Haig-Simons definition of income and the Fisher definition of income are virtually identical
a. True b. False
A business incurs the following costs per unit: Labor - $125/unit; Materials $45/unit and rent - $250,000/month. If the firm produces 1,000,00 . units a month, the total fixed costs equal
a. $250,000 b. $50,000 c. $20,500 d. $30,000