In which of the following games is it clearly the case that the cooperative outcome of the game is good for the two players and good for society?
a. Two guilty criminals have been captured by the police, and each prisoner decides whether to confess or to remain silent.
b. Two airlines dominate air travel between City A and City B, and each airline decides whether to charge a "high" airfare or a "low" airfare.
c. Two duopoly firms account for all of the production in a market, and each firm decides whether to produce a "high" amount of output or a "low" amount of output.
d. Two oil companies own adjacent oil fields over a common pool of oil, and each company decides whether to drill one well or two wells.
d
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The economic profit of a perfectly competitive firm
A) is less than its total revenue. B) equals its total revenue. C) is greater than its total revenue. D) is less than its total revenue if its supply curve is inelastic and is greater than its total revenue if its supply curve is elastic.
Which of the following is true about the consumer price index?
A) It is updated continuously to account for the introduction of new goods. B) It accounts for people switching away from goods whose prices have risen. C) It assumes that consumers purchase the same quantity of each product in the market basket each month. D) It accurately reflects quality changes in goods and services over time.
According to Milton Friedman, how will your consumption be affected by a $2,00 . fine for littering and a $50 cut in your weekly salary that your boss told you to get used to it because it's here to stay? Explain
Once the FOMC announces the result of its meeting the attendees:
A. never discuss the policy issues addressed in the meetings. B. observe a blackout period that lasts for a week following the meeting during which they do not speak publicly about the economic outlook or current monetary policy. C. observe a twenty-four hour blackout period following the meeting during which they do not speak publicly about the economic outlook or current monetary policy. D. it must brief the financial news immediately after and answer questions posed to them.