The Wii is a wildly popular home video game console released by Nintendo. The Wii system was first available in the U.S. in November, 2006 and has sold more than 30 million units as of August 2010. The Wii retails for $199
Suppose Ahmed is willing to pay $230, Lana is willing to pay $175, and Bodie is willing to pay $300 for a Wii. What is the value of Lana's consumer surplus? A) No consumer surplus is generated because Lana will not buy the Wii.
B) $249
C) $225
D) $24
A
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Using the economic way of thinking, what is the least efficient use of water?
A) Drinking B) Bathing C) Filling balloons D) It depends on the water user's estimate of cost and benefit.
What is the infant-industry argument for protection from international trade?
A) Domestic firms must be protected until they gain a comparative advantage. B) Any firm necessary in wartime must be protected. C) Foreign producers selling below cost to drive domestic firms bankrupt must be stopped. D) Domestic jobs must be protected from competition from low-paid foreign workers. E) Foreigners selling products in the economy limit the nation's diversity and stability.
Why does a prisoner's dilemma lead to a noncooperative equilibrium?
A) because players must choose from a limited number of non-dominant strategies B) because each player is uncertain how other players will play the game C) because each player had agreed before the game started to minimize the harm that he can inflict on the other players D) because each rational player has a dominant strategy to play a certain way regardless of what other players do
As a scientist, an economist's main professional objective is to become wealthy
a. True b. False