Explain the prisoner’s dilemma case in game theory and its relevance to the maximin criterion.
What will be an ideal response?
The scenario is of two burglary suspects who are captured by the police and interrogated in separate rooms. Each suspect has two strategy options: to deny the charge or to confess. If both deny it, both go free, for the police have no strong evidence. But, if one confesses and the other does not, the silent prisoner can expect a very long prison term. The maximin solution, then, is for both to confess and receive the moderate sentence that this elicits. If they were permitted to act collusively, they both would end up with no prison terms.
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Explain how public goods provided by the federal government differ from public goods provided by the state and local governments
What will be an ideal response?
In Obamacare (the Affordable Care Act) gives low-income families
A) vouchers for healthcare. B) subsidies to buy private healthcare insurance. C) full access to Medicaid. D) full access to Medicare..
Marginal revenue product is measured in dollars per unit of output
a. True b. False
The assertion "capital is productive, but the ownership of capital is not," assumes the efficient use of resources
A) is different from technological efficiency and more difficult to achieve. B) is no more likely under one ownership arrangement than another. C) may be significantly affected by transferring ownership from private to public hands. D) sometimes is affected by transferring ownership from public to private hands.