For a commitment strategy to work:
A. the punishment must be so bad that it outweighs the incentive to defect in the game.
B. the punishment must occur immediately after the game is played.
C. both players must agree to a punishment.
D. no player may have a dominant strategy.
A. the punishment must be so bad that it outweighs the incentive to defect in the game.
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Why specialize?
A) because assigning each worker a variety of tasks makes her more productive B) It usually increases productivity. C) to decrease our dependence on each other D) There is no economic rationale for specialization.
Pollution taxes reduce pollution by:
A. decreasing the amount of the good sold that causes the pollution. B. causing firms to produce less of the good that generates the pollution. C. encouraging firms to modify their production process to reduce emissions. D. All of these
The marginal product of labor is calculated assuming other factor inputs
A. decrease. B. increase less than proportionately. C. remain constant. D. increase more than proportionately.
In states which operate under title theory, the borrower
a. transfers ownership to the mortgagee or a third party until paid b. transfers possession to the mortgagee or a third party until paid c. pledges the property as security on the loan d. creates a tenancy in common w/ the lender