A prisoner's dilemma illustrates situations in which:
A. there is a conflict between the narrow self-interest of individuals and the broader interests of a group.
B. efficiency is an important social goal.
C. resources with the lowest opportunity cost should be used first.
D. everyone does best when each person specializes in the activities in which he or she has a comparative advantage.
Answer: A
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On your first day at work, your boss tells you to call the bank and get the bid and the ask for British pounds. Having just returned from studying in London, you know that the exchange rate should be somewhere around 1.25
You call the number and the lady says "579 and 585." What does that mean? A) She didn't understand your question. B) The bid is 0.579 and the ask is 0.585. C) The ask is 0.579 and the bid is 0.585 D) The bid is 1.2579 and the ask is 1.2585.
Generally speaking, the inclusion of transportation costs in the total costs of production has the effect of causing the LRAC curve to:
A) shift down. B) flatten out. C) shift up. D) become steeper over the range on economies of scale.
You want to run a difference-in-difference experiment with a price increase for the bacon cheeseburger item on your menu. If you are worried about the "representativeness" with your control group, a poor comparison menu item would be
a. soft drink sales b. the bacon burger without cheese c. the bacon-lettuce-and-tomato sandwich d. the regular cheeseburger
When a surplus exists
A) the price is below the market clearing price. B) quantity demanded exceeds quantity supplied. C) an excess quantity demanded exists. D) none of the above.