If both players in a game have a dominant strategy, then the game they are playing
A) has no Nash equilibrium.
B) must have one Nash equilibrium.
C) must have two Nash equilibria — one for each player.
D) More information is needed to determine the number of Nash equilibria in the game.
B
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Refer to Figure 3.1. Which assumption concerning preferences do Alvin's indifference curves violate?
A) Diminishing marginal rates of substitution B) Transitivity of preferences C) More is preferred to less D) Completeness
Social Security payroll taxes are
A. proportional with a rate of 7.65 percent. B. indirect taxes. C. progressive because total taxes increase with income. D. regressive because the tax is not applied after reaching an income threshold.
If a monopolistically competitive firm is earning economic profits in the short run:
A. its output will increase in the long run. B. these profits will persist in the long run because of the firm's limited monopoly power. C. price will be driven down to minimum average total cost in the long run. D. these profits will be eliminated in the long run as new firms enter the industry.
The underground economy can be described as
A) production of intermediate goods and services. B) economic production that includes mining. C) economic activity that is hidden from the government to avoid taxes or because the activity is illegal. D) production of infrastructure that spurs growth in the rest of the economy.