Why does a penalty kicker in a soccer game use a mixed strategy?
What will be an ideal response?
If a penalty kicker chooses a pure strategy of kicking in one particular direction, the goalie will notice and best respond by always diving in the same direction. This will result in a negative payoff to the kicker. However, if the kicker chooses a mixed strategy by kicking either left or right randomly, the goalie will not be able to choose a strategy for himself.
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Deflation causes the demand for bonds to ________, the supply of bonds to ________, and bond prices to ________, everything else held constant
A) increase; increase; increase B) increase; decrease; increase C) decrease; increase; increase D) decrease; decrease; increase
For a firm in a perfectly competitive market, if it is producing at a level of output where marginal costs are less than marginal revenue it:
A. is producing a profit-maximizing quantity. B. should invest more in advertising in order to raise revenues. C. should cut back production to increase profits. D. should increase production to increase profits.
Who would be most likely to agree that "People do not always save more as interest rates rise"?
A) a classical economist B) John Maynard Keynes C) an efficiency wage theorist D) a and b E) a, b, and c
A Big Mac in Japan costs 400 yen while it costs $4.50 in the U.S.. The nominal exchange rate is 100 yen per dollar. Which of the following would both make the real exchange rate move towards purchasing-power parity?
a. the price of Big Macs in the U.S. falls, the nominal exchange rate falls b. the price of Big Macs in the U.S. falls, the nominal exchange rate rises c. the price of Big Macs in the U.S. rises, the nominal exchange rate falls d. the price of Big Macs in the U.S. rises, the nominal exchange rate rises