In the prisoners' dilemma,
a. the prisoners easily collude in order to achieve the best possible payoff for both.
b. only one player has a dominant strategy.
c. when each player chooses his dominant strategy the players achieve the best joint outcome.
d. when each player chooses his dominant strategy the players reach a Nash equilibrium.
d
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Government payment of a per-unit subsidy for medical care causes
A) the market supply curve to shift upward. B) the market demand curve to shift downward. C) a reduction in the price that providers of medical care receive for each unit of care provided. D) an increase in the quantity of medical care demanded above the quantity demanded in the absence of the subsidy.
An example of a moral hazard would be Andrew leaving the washer, dryer, and dishwasher running at home while he goes to class since he is fully insured and he will not be at risk if a fire occurs
a. True b. False
If a monopsonist's labor supply curve is positively sloped, the marginal factor cost (MFC) will exceed the wage rate
a. True b. False Indicate whether the statement is true or false
According to John Taylor, during the period 2002-early 2006 the Fed set its federal funds rate target _____________ the rate that would have existed had the Fed set its target using the Taylor rule
A) below B) above C) equal to D) sometimes below and sometimes above