In a prisoner's dilemma situation where firms are setting prices, the dominant strategy is always to charge the price that leads to maximum profits for all firms
a. True
b. False
Indicate whether the statement is true or false
False
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Economic profit equals accounting profit minus:
a. explicit costs. b. implicit costs. c. fixed costs. d. variable costs.
Are common resources excludable? Are they rival in consumption?
Suppose that the Home country in the twosector (manufacturing and agriculture) specificfactors model has a comparative advantage in agricultural output. Will workers be better or worse off following the opening of trade with other countries?
a. Workers will be better off because the nominal wage increases. b. Workers will be worse off because the nominal wage decreases. c. Workers may be better off or worse off because the real wage in terms of the agricultural good rises and the real wage in terms of the manufactured good falls. d. Workers may be better off or worse off because the real wage in terms of the agricultural good falls and the real wage in terms of the manufactured good rises.
GDP is a measure of all of the following EXCEPT
A. the total value of expenditures. B. the overall level of economic activity. C. the total of production. D. overall welfare.