When firms are faced with repeating games, such as the prisoner's dilemma, they:
A. will tend to act more like perfectly competitive firms.
B. are more likely to collude.
C. are less likely to collude.
D. will be more likely to renege on agreements.
Answer: B
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A benefit-based standard is one that
a. considers the benefits balanced with the costs of that standard b. maximizes the marginal external benefit (MEB) of the standard c. is set to the point at which MEB is zero d. none of the above
The price-specie-flow mechanism
A) is an automatic mechanism for assuring external balance under floating exchange rates. B) is an automatic mechanism for assuring external balance under the gold standard. C) is an automatic mechanism for assuring internal balance under floating exchange rates. D) is an automatic mechanism for assuring internal balance under the gold standard. E) is an automatic mechanism for assuring internal balance under mercantilism.
Which of the following is a reason that some economists do not agree with the concept of a labor-leisure tradeoff?
a. Wages are paid in dollars and leisure is measured in time, hence there is no way to compare the two. b. On a day-to-day basis, most jobs do not have the flexibility to allow people to weigh the benefits and costs to determine how much they should work that day. c. In the long-run, the supply of labor hours is perfectly inelastic. d. An increase in the wage rate always leads to an increase in the supply of labor hours, therefore the workers do not think of choosing leisure over labor. e. Some people do not work at all, so there is no labor-leisure tradeoff for those individuals.
To calculate GDP in 2000, you would subtract the value of goods exported in 2000
Indicate whether the statement is true or false