Something that changes incentives so as to make otherwise empty threats or promises credible is called a:
A. dominant strategy.
B. commitment device.
C. strategic device.
D. Nash equilibrium.
Answer: B
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What is the unemployment rate in a town in which 65,400 persons are employed and 11,000 are unemployed?
a. 20.2 % b. 16.8% c. 14.4% d. 11%
In the early 1930s, U.S. government expenditures increased as part of the New Deal without any change in taxes. This:
A. shifted the AD curve to the right. B. made the AD curve flatter. C. made the AD curve steeper. D. shifted the AD curve to the left.
Suppose disposable income increases from $5 trillion to $6 trillion. As a result, consumption expenditure increases from $4 trillion to ________. This result means the MPC equals ______.
What will be an ideal response?
What is marginal factor cost? How is it related to the supply curve of an input?
What will be an ideal response?