Exhibit 8-2 Consumption function
As shown in Exhibit 8-2, the marginal propensity to consume (MPC) is:
A. 0.25.
B. 0.50.
C. 0.75.
D. 0.90.
Answer: B
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Mexico and the members of OPEC produce crude oil. Realizing that it would be in their best interests to form an agreement on production goals, a meeting is arranged and an informal, verbal agreement is reached. If both Mexico and OPEC abide by the agreement, then OPEC's profit will be $200 million and Mexico's profit will be $100 million. If both Mexico and OPEC cheat on the agreement, then OPEC's profit will be $175 million and Mexico's profit will be $80 million. If only OPEC cheats, then OPEC's profit will be $185 million, and Mexico's profit will be $60 million. If only Mexico cheats, then Mexico's profit will be $110 million, and OPEC's profit will be $150 million. You may find it helpful to fill in the payoff matrix below. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q241g1.jpg" alt="" style="vertical-align: 0.0px;" height="203" width="377" />This game is ________ because ________.
A. not a prisoner's dilemma; OPEC does not have a dominant strategy
B. not a prisoner's dilemma; cheating is better for both
C. a prisoner's dilemma; cheating is better for both
D. a prisoner's dilemma; not cheating is better for both
In a market where firms are successful in convincing their customers that their product is different from their competitors' product but otherwise have no barriers to entry would be best characterized by
A) monopolistic competition. B) a monopoly. C) perfect competition. D) an oligopoly market.
Other things equal, the supply of labor will be lower to a job that
a. offers more prestige b. offers valuable on-the-job training c. requires advanced skills or education d. provides a climate-controlled work environment e. allows for flexible work schedules
A country that has had success with export-led growth policy is:
A. North Korea. B. South Korea. C. Russia. D. Liberia.