Collusion is more successful in a game that will continue forever or in a game with an uncertain ending time than in a game with a known ending time
What will be an ideal response?
True. In games with a known final period players will cheat in the final period. This is true because the final period becomes a single period game. By the same reasoning, players will cheat in the period prior to the last period, etc. Thus, when players know the last period, they are more likely to cheat in each period.
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Which of the following identifies correct reasons for the sustained growth in the Western world post 19th century?
A) Demographic transition and the American civil war B) The American civil war and the Industrial Revolution C) The Agricultural Revolution and the Industrial Revolution D) Demographic transition and the Industrial Revolution
Unanticipated moral hazard contingencies can be reduced by
A) screening. B) long-term customer relationships. C) specialization in lending. D) credit rationing.
In contrast to both perfect competition and monopolistic competition, an oligopoly market structure is characterized by:
a. price discrimination. b. a perfectly inelastic demand curve. c. the presence of infinite number of firms. d. the production of only differentiated products. e. difficulty in the entry of new firms.
Fractional reserve banking began
A. in ancient Greece. B. in the early nineteenth century. C. in the Middle Ages. D. in the early twentieth century.