A Nash equilibrium
i. is named after the Nobel prize winning economist, John Nash.
ii. occurs when each player chooses the best strategy given the strategy of the other player.
iii. must give the best possible outcome for each player.
A) i only
B) ii only
C) iii only
D) i and ii
E) ii and iii
D
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Which of the following correctly describes incentives?
A) Incentives refer to the maximum price that a buyer is willing to pay for a good. B) Incentives are rewards or penalties that motivate people to behave in a particular way. C) Incentives are prices that are fixed by the government and not by market forces. D) Incentives refer to the minimum price at which a seller is willing to sell a product.
According to Keynes' philosophy of government budgets, _____
a. chronic deficits accumulate into a national debt b. permanent surpluses are desirable c. fiscal policy focuses on maintaining an annually balanced budget d. deficits dampen aggregate demand in the short run and reduce the federal debt e. deficits are appropriate during recessions
The net gain to society from the operation of a competitive market in equilibrium is
A. consumer surplus only. B. the profits of the producers. C. the sum of consumer surplus and producer surplus. D. producer surplus only.
An increase in government expenditures that ________ the budget deficit in an example of ________
A) raises, automatic stabilization B) raises, discretionary fiscal policy C) lowers, automatic stabilization D) lowers, discretionary fiscal policy