Backward induction is a useful tool for:
A. finding an optimal strategy in a sequential game.
B. analyzing the decisions in a prisoner's dilemma-type game.
C. finding an optimal strategy in a simultaneous game.
D. Backward induction is useful in any of these games.
B. analyzing the decisions in a prisoner's dilemma-type game.
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At an interest rate of 6 percent, what would be the present value of receiving $22,000 twelve years from now?
A) $10,934 B) $18,645 C) $19,643 D) $20,755
Suppose that a small economy that had previously been closed becomes open. If its real interest rate had previously been below the world real interest rate, we would expect that
A) the country's real interest rate would remain below the world level. B) the country would become a net lender abroad. C) the country would become a new borrower abroad. D) the amount of loanable funds supplied in the country would decline.
Wayne Inc supplies a wide range of electronic products. However, the quality of the company's products is low compared to other companies. The CEO of the company decides to improve quality by reducing the variety of products. The decision of the CEO is based on the concept of _____
a. privatization b. globalization c. economies of scale d. specialization
It has been said that well-educated citizens are necessary for democracy. Discuss this idea in economic terms. What market imperfection might occur and what are the appropriate government policies to correct it?
What will be an ideal response?