For two oligopolistic firms facing a prisoner's dilemma in advertising, choosing not to advertise is the dominant strategy
a. True
b. False
Indicate whether the statement is true or false
False
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An expansionary monetary policy results in lower interest rates, which in turn
A) reduces the international price of the dollar and increases net exports. B) increases the foreign demand for U.S. financial instruments, lowering the international price of the dollar and decreasing net exports. C) reduces the foreign demand for U.S. financial instruments and reduce net exports. D) increases foreign demand for U.S. financial instruments, raising the international price of the dollar and reducing net exports.
The replacement ratio is defined as
a) The cost of replacing a worker b) The cost of employing a new worker relative to the value of output they could produce c) The cost of replacing capital relative to the book value of existing capital d) Unemployment benefit as a share of previous earnings e) None of the above
We see a backward-bending labor supply curve whenever
A. the income effect dominates the substitution effect over some range of wage rates. B. the substitution effect dominates the income effect over some range of wage rates. C. minimum wages are set too low. D. minimum wages are set too high.
Changes in stock market prices:
A. do not greatly impact the macroeconomy and used alone are not reliable predictors of the future health of the economy. B. greatly impact the macroeconomy but used alone are not reliable predictors of the future health of the economy. C. greatly impact the macroeconomy and used alone are reliable predictors of the future health of the economy. D. do not greatly impact the macroeconomy but used alone are reliable predictors of the future health of the economy.