A Nash equilibrium:
A. sometimes may not be reached because people do not assume that others act rationally.
B. will always be reached.
C. sometimes may not be reached because people assume others react rationally.
D. is always reached in game playing.
Answer: A
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Perfectly inelastic demand is represented by a demand curve which is ________, and relatively inelastic demand is represented by a demand curve which is ________
A) upward sloping; horizontal B) horizontal; downward sloping C) downward sloping; vertical D) vertical; downward sloping
An exchange rate that is set by official government policy is called a ________ exchange rate.
A. nominal B. flexible C. fixed D. real
Refer to Scenario 11.1. Suppose all five ranchers know that their land that Mariana needs is worth a total of $2 million. If each rancher agrees to sell his or her parcel of land to Mariana for $600,000, Mariana will purchase
A) all five parcels of land and the railway will be built. B) all five parcels of land but the railway will not be built. C) only four parcels of land and the railway will be built. D) no parcels of land and the railway will not be built.
If the CPI rises from 206.7 to 212.7 between two consecutive years, by how much has the cost of living changed between these two years?
A) The cost of living has increased by 6%. B) The cost of living has increased by 12.7%. C) The cost of living has decreased by 6%. D) The cost of living has increased by 2.9%.