An outcome in which all players choose the best strategy they can, given the choices of all other players, is called:
A. a dominant strategy.
B. collusion.
C. a Nash equilibrium.
D. the prisoner's dilemma.
C. a Nash equilibrium.
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Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and GDP Price Index rises. b. The quantity of real loanable funds per time period falls, and GDP Price Index falls. c. The quantity of real loanable funds per time period rises, and GDP Price Index falls. d. The quantity of real loanable funds per time period falls, and GDP Price Index remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.
The concept of the margin decision deals with:
A) engaging in unethical activities. B) making difficult choices. C) making incremental choices. D) choosing all or none of something.
Which of the following is most accurate?
A. In all cases, competitive markets yield more consumer surplus than would be enjoyed in a monopoly market with the same cost structure. B. In all cases, competitive markets yield less consumer surplus than would be enjoyed in a monopoly market with the same cost structure. C. In some cases, competitive markets can yield less consumer surplus than would be enjoyed in a monopoly market with the same cost structure. D. In all cases, competitive markets yield the same consumer surplus that would be enjoyed in a monopoly market with the same cost structure.