In game theory, a Nash equilibrium is the set of strategies each of the players chooses by selecting the strategy that maximizes her payoff independent of what the other players might choose
Indicate whether the statement is true or false
FALSE
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An LDC can experience economic development at virtually zero opportunity cost by
a. establishing a comprehensive banking system b. taxing its citizens at a higher rate c. bringing in foreign direct investment d. increasing its population growth rate e. giving up consumer goods to acquire capital goods
Game theory is based on the idea that each participant makes decisions based on how she believes the competition will react
a. True b. False Indicate whether the statement is true or false
The Keynesian view of the world is that the
a. self-correcting mechanism is unreliable. b. benefits of fighting unemployment are high and the costs are low. c. short-run Phillips curve is relatively flat. d. All of the above are correct.
Which of the following questions about predatory pricing remains unresolved?
a. Are the courts capable of determining which price cuts are competitive and which are predatory? b. Are the courts capable of determining which price cuts are good for consumers? c. Is predatory pricing ever a profitable business strategy? d. All of the above questions about predatory pricing are unresolved.