A subgame-perfect equilibrium is a Nash equilibrium in which no player can make himself better off by changing his decision at any decision node
Indicate whether the statement is true or false
TRUE
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When a group is discriminated against, its
A) wages fall but its employment does not. B) employment and its wages decrease. C) employment decreases but its wages do not. D) employment and its wages are unaffected.
The holdout problem arises when unanimous approval among members of a group is required_____
a. for a Pareto efficient move to occur b. for a Pareto superior move to occur c. for government to decide to undertake the project d. for government to be able to levy the tax to fund the project
In Spain, people are considered organ donors unless the explicitly indicate they do not want to be. In the United States, people are only considered organ donors if they explicitly indicate they wish to be. Behavioral economics would suggest that
A) everything else equal, the opt-in system of Spain would generate more organ donors as a percentage of the adult population. B) everything else equal, the opt-in system of the United States would generate more organ donors as a percentage of the adult population. C) everything else equal, the opt-out system of Spain would generate more organ donors as a percentage of the adult population. D) everything else equal, the opt-out system of the United States would generate more organ donors as a percentage of the adult population.
According to the interest rate effect, a decrease in the price level will
A) decrease the real value of money balances, which causes total planned real expenditures to increase. B) cause interest rates to fall, which generates an increase in borrowing, so that total planned real expenditures increase. C) lead to a decrease in net exports, which causes total planned real expenditures to decrease. D) increase the real value of money balances, which causes interest rates to increase, thereby reducing total planned expenditures.