Describe a tit-for-tat strategy.
What will be an ideal response?
It is a strategy where this period a firm chooses the price that the other firm chose in the last period.
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Given the data in Table 6.1, if the workers who are "not employed and not looking for work" were counted as not employed and in the labor force, the unemployment rate of Metropolis would be approximately
A) 4 percent. B) 7 percent. C) 9 percent. D) 10 percent.
Suppose a Chinese restaurant routinely provides free fortune cookies to its customers. The economic way of thinking suggests the restaurant is
A) engaging in predatory pricing of its meals. B) attempting to increase its total profit. C) selling Chinese food below cost. D) doing all of the above. E) almost certainly doing none of the above.
Reserves are ________
A) gold in a bank's vault plus its gold at Federal Reserve banks B) cash in a bank's vault plus its deposits at Federal Reserve banks C) cash in a bank's vault plus its gold at Federal Reserve banks D) cash in a bank's vault plus the cash carried by its customers
A proportional tax is one that
A. Collects the same rate on every dollar of income. B. Falls as income rises. C. Is collected voluntarily for specific expenditure purposes. D. Rises as income rises.