If each player has a dominant strategy, then those strategies make up the Nash equilibrium
What will be an ideal response?
True. A Nash equilibrium is where each player is selecting their best response to the other player's strategy. Because a dominant strategy is a best response to any strategy of the other player, it must also be a best response to the specific strategy of the other player.
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In a country with a working-age population of 300 million, 230 million workers are employed and 40 million workers are unemployed. What is the labor force participation rate?
A) 100 percent B) 90 percent C) 65 percent D) 5 percent
The Coase theorem states that if transaction costs are low, the number of parties is small, and property rights are well established
A) the government must intervene to eliminate any externalities in the market. B) private transactions are efficient. C) there will be no pollution. D) Both answers B and C are correct.
Expectations of asset values by participants in financial markets
A) are not possible to model, given the current state of economic knowledge. B) determine market prices, but are not related to changes in market prices. C) generally do not change. D) determine current market prices and changes in market prices.
As income rises ________
A) the number of transactions households and firms undertake should increase B) wealth also rises C) demand for real money balances should increase D) all of the above E) none of the above