Lee and Cody are playing a game in which Lee has the first move at A in the decision tree shown below. Once Lee has chosen either aggression or cooperation, Cody, who can see what Lee has chosen, must choose either aggression or cooperation at B or C. Both players know the payoffs at the end of each branch.
In the equilibrium of this game, Lee chooses ________, and then Cody chooses ________.
A. aggression; aggression
B. cooperation; cooperation
C. cooperation; aggression
D. aggression; cooperation
Answer: D
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The richest 20 percent of individuals in the United States receive about ________ of the nation's total income
A) 21 percent B) 23 percent C) 91 percent D) 51 percent E) 99 percent
Refer to the scenario above. Jacob should submit a bid of ________
A) $500 B) $400 C) $300 D) $225
Cyclical unemployment refers to unemployment resulting from:
a. a mismatch of skills. b. being in the wrong geographical location. c. the time and monetary cost of finding the best job. d. a recession.
Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists study?
a. Unemployment rate falls from 7.5 percent to 7.3 percent. b. Real GDP falls by 0.4 percent in the third quarter. c. Inflation was 2.4 percent last year. d. The price of gasoline rises due to rising oil prices.