Which of the following is a game theory strategy for oligopolists to avoid a low-price outcome?
a. Tit-for-tat
b. Price leadership
c. Cartel
d. All of these
d
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Like negative externalities, tradable permits are useful in allocating common resources because:
A. the depletion of common resources imposes a negative externality. B. the problem present in both is overconsumption. C. the socially optimal quantity is not the same as the individual consumers in either case. D. All of these statements are true.
If a bank has $1,000,000 in reserves and checking deposits of $3,000,000 . what is the bank's reserve position if the required reserve ratio is 20 percent?
a. The bank has $500,000 of required reserves and $500,000 of excess reserves. b. The bank has $600,000 of required reserves and $400,000 of excess reserves. c. The bank has $400,000 of required reserves and $600,000 of excess reserves. d. The bank has $200,000 of required reserves and $800,000 of excess reserves.
In the era of free agency, small market franchises in baseball
A. can only make money when they win games. B. often must choose between making money and winning games. C. will lose money regardless of whether they win games. D. will make money whether or not they win games.
Suppose a senior college football player approaches an insurance company and seeks to purchase an insurance policy against him receiving a career-ending injury. The insurance company
A) will sell him an insurance policy because the proposal entails uncertainty not risk. B) will sell him an insurance policy because the proposal entails risk not uncertainty. C) will not sell him an insurance policy because the proposal entails uncertainty not risk. D) will not sell him an insurance policy because the proposal entails risk not uncertainty.