Refer to Figure 9.2. What is the Nash equilibrium of this pricing game?
What will be an ideal response?
The only Nash equilibrium in this game is for General Electric to set a price of $2,000 and Westinghouse to set a price of $2,000.
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Refer to Table 9-12. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many swords will Morocco consume?
A) 60 B) 75 C) 135 D) 200
Imagine that there are only two nations in the world, the United States and Mexico. If Americans buy more goods made in Mexico, other things constant, the
a. U.S. demand curve for Mexican pesos will shift rightward b. U.S. demand curve for Mexican pesos will shift leftward c. U.S. supply curve of Mexican pesos will shift leftward d. U.S. supply curve of Mexican pesos will shift rightward e. U.S. supply curve of Mexican pesos will shift upward
Given the underlying demographic changes in our society, we can expect
a. budget surpluses to outnumber budget deficits in the years ahead. b. the number of budget surpluses to be approximately equal to the number of budget deficits in the years ahead. c. budget deficits to outnumber budget surpluses in the years ahead. d. budget deficits one year to be followed by a budget surplus the next so that the budget balances every two years.
Figure 20-3
Figure 20-3 shows a worker’s backward-bending supply curve of labor. Which of the following statements is correct?
A. The substitution effect of a change in the wage dominates the income effect at all points on the curve. B. The income effect of a change in the wage dominates the substitution effect at all points on the curve. C. Above W*, the substitution effect of a change in the wage dominates the income effect; below W*, the income effect dominates the substitution effect. D. Above W*, the income effect of a change in the wage dominates the substitution effect; below W*, the substitution effect dominates the income effect.