Define a sequential game
What will be an ideal response?
A sequential game is a type of strategic game in which one player moves first and commits to a strategy that is then taken into consideration by the other player before making a decision. Sequential games tend to favor the first mover because this player has the opportunity to determine a Nash equilibrium that works to his/her advantage.
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Inflation reduction has the highest cost when the efforts are
a. credible so that the sacrifice ratio is low. b. credible so that the sacrifice ratio is high. c. unexpected so that the sacrifice ratio is high. d. unexpected so that the sacrifice ratio is low.
A decrease in U.S. tariffs on European goods, ceteris paribus, would ______.
a. make European goods more affordable to U.S. residents b. lead to a lower exchange rate for the euro c. make U.S. goods more affordable to European residents d. increase the income of U.S. residents
How does stock differ from flow?
A. A flow concept is a value at a point in time, while a stock concept has meaning over a specified period of time. B. A flow concept has meaning over a specified period of time, while a stock concept is a value at a point in time. C. The do not differ; both flow and stock concepts are values at a point in time. D. They do not differ; both flow and stock concepts have meaning only over a specified period of time.
Demand curves are negatively sloped when people buy:
A. less as the price decreases. B. more as the price increases. C. less as incomes decrease. D. more as the price decreases.