Refer to Scenario 12.2. Explain why the situation described in the scenario is neither a prisoner's dilemma nor a battle of the sexes
What will be an ideal response?
The game is not a prisoner's dilemma because one player's best choice depends on the choice made by the other player. For example, if Jerome donates, then Eliza should not donate, but if Jerome does not donate, then Eliza should donate. Therefore neither player has a dominant strategy, so this cannot be a prisoner's dilemma. This is not a battle of the sexes because if both Jerome and Eliza play their tough strategies and do not donate, the outcome is disastrous and Shari dies. This makes the scenario a game of chicken.
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The population of Potentia doubled within 20 years while its income per capita remained unchanged during the same period of time. This implies that ________
A) its price level doubled B) its gross domestic product also doubled C) its price level halved D) its gross domestic product remained constant
Suppose the current price of oil is $90 a barrel and the quantity supplied is 800 million barrels per day
If the price elasticity of supply for oil in the short run is estimated at 0.5, use the midpoint formula to calculate the percentage change in quantity supplied when the price of oil rises to $98 a barrel.
Rent controls can cause distortions in resource allocation by
a. causing too many resources to be devoted to housing b. creating a surplus of housing c. creating incentives toward home ownership rather than renting d. causing too few resources to be devoted to housing e. decreasing the demand for rental units
Identify the correct statement about the effect of an expansionary monetary policy in an economy
a. It results in an increase in real gross domestic product in the short run and inflation in the long run. b. It results in a decrease in real gross domestic product in the short run and inflation in the long run. c. It results in an increase in real gross domestic product in the short run and deflation in the long run. d. It results in a decrease in real gross domestic product in the short run and deflation in the long run.