Using economic analysis to help understand world issues
a. assumes that all decision makers use detailed economic analysis
b. highlights the role of choice when resources are scarce
c. has unlimited application
d. is not appropriate because reality is too complex for economic modeling
e. typically enables one nation to gain only when another nation loses
B
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Refer to Figure 7.1. If Angus chooses to earn the most money and Dudley calls the police, Dudley will receive a daily payoff of
A) $350. B) $550. C) $700. D) none of the above
A method of analyzing the strategic interaction that occurs between small numbers of people, firms, organizations, or countries is called
A) clinical observation. B) microdemographics. C) forensic economics. D) game theory.
A long put position
A) has a value of zero if the stock price is below the exercise price. B) has a value equal to the stock price minus the exercise price if the stock price is above the exercise price. C) has a value of zero if the stock price at the time of purchase exceeds the expected stock price at option expiration. D) has a value equal to the exercise price minus the stock price if the stock price is below the exercise price.
Pure mercantile system is an economic system characterized by the private ownership of the resources
Indicate whether the statement is true or false