Refer to Scenario 6.1. Suppose the friends are forced by government to combine their businesses and share what they make. With this revision to the scenario, the Nash equilibrium occurs where
A) both Tasha and Gloria work extremely hard.
B) both Tasha and Gloria work somewhat hard.
C) Both A and B represent Nash equilibria.
D) There is not a Nash equilibrium in this scenario.
B
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Which of the following lowers frictional unemployment?
A) more young people in the economy B) decreasing unemployment benefits C) increasing the pace of technological change D) increasing the minimum wage E) None of the above answers are correct because all of the answers raise frictional unemployment.
If banks receive a greater amount of reserves and do not hold all of these reserves as excess reserves, the money supply expands
Indicate whether the statement is true or false
Which of the following is a relevant cost?
A) replacement cost B) sunk cost C) historical cost D) fixed cost E) All of the above are relevant.
Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. If both Amy and Mike produce the good in which they have comparative advantage, the total annual output of this economy will be ________.
A. 30 cars B. 10,000 pounds of cheese and 30 cars C. 5,000 pounds of cheese and 20 cars D. 10,000 pounds of cheese