A Nash equilibrium is the:
A. output level that minimizes average total cost.
B. strategy that maximizes the outcome of all the players.
C. payoff that maximizes the joint payoff.
D. set of strategies such that no player can improve his or her position by changing his or her own action.
Answer: D
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
If the budget deficit was eliminated, the federal government would have more money than it could spend.
Answer the following statement true (T) or false (F)
Assume that after the fifth worker, each additional worker a firm hires is less productive than the previous worker. Based on this information, we can conclude that beyond the fifth worker, the average product of labor will:
A) increase. B) stay the same. C) decrease. D) cannot be determined without additional information.
If a union threatens to strike during a slow demand period, it is more likely to
a. Have its conditions accepted b. Have its conditions rejected c. Get laughed at d. All of the above