In the Prisoners' Dilemma game,
a. the Nash equilibrium is the only outcome that is not Pareto optimal.
b. neither player has a dominant strategy.
c. the Stackelberg equilibrium will be Pareto optimal if the game is played sequentially.
d. all possible outcomes are Nash equilibria.
a. the Nash equilibrium is the only outcome that is not Pareto optimal.
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Which of the following is not a reason why the U.S. economy has been more stable since 1950?
A) Unemployment insurance and other government programs curtail the decline in spending that occurs during a recession. B) Services have become a larger fraction of GDP and goods have become a smaller fraction of GDP. C) Goods have become a larger fraction of GDP and services have become a smaller fraction of GDP. D) The government has actively pursued policy to combat recessions and prolong expansions.
Increase in consumer confidence will ________ the expenditure curve:
A) decrease. B) increase. C) down. D) none of the above.
Why is a monopoly inefficient?
What will be an ideal response?
How is consumer surplus changed by the introduction of tariffs on imported shoes as shown in Exhibit 1?
a. loss of areas c, d, e, and f
b. loss of areas d and e
c. gain of area c
d. gain of area e