Risk management in command economies:
A. is easy because there is no risk.
B. is easy because the government controls most activity and can eliminate risk.
C. tends to be done poorly because government officials do not understand risk.
D. tends to be done poorly because decision makers are insulated from the risk of making a
poor decision.
Answer: D
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Protection of new products from global competition is known as
A) the infant-industry argument. B) dumping. C) a quota. D) protection of domestic jobs.
When a second firm enters a monopolist's market:
A. the former monopolist's average cost increases as its output level decreases. B. the demand curve facing the former monopolist shifts to the right. C. the market price rises as the average cost increases. D. None of these
Suppose that your local government provides drinking water and charges a 10 cent per gallon fee. Explain whether or not the drinking water is a public good.
What will be an ideal response?
A game in which all the players are worse off at the end of the game is a
A) negative-sum game. B) dominant strategy game. C) positive-sum game. D) noncooperative game.