Consider a game where individuals are asked to contribute to a public good. Then consider the best response function for individual i, with individual i's contribution measured on the vertical axis and "the average contribution by everyone else" on the horizontal. Then as the number of individuals increases, i's best response function shifts in.
Answer the following statement true (T) or false (F)
False
Rationale: It rotates inward, with the vertical intercept remaining constant.
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Which of the following situations will arise in the domestic market following the imposition of a voluntary export restraint?
A) imports increase, domestic production increases, prices increase B) imports decrease, domestic production increases, prices increase C) imports decrease, domestic production increases, prices decrease D) imports increase, domestic production decreases, prices decrease
Domingo is a contestant on a trivia quiz show. For every state capital he can correctly identify, he will win $1,000 . However, before identifying any capitals, he must decide how many he thinks he can correctly identify. If he cannot identify as many as he has wagered, Domingo will not win any money. Suppose Domingo says that he can correctly identify 42 state capitals for a potential payoff of
$42,000 . According to studies of human decision-making, what is most likely to happen? a. Domingo will be able to identify 42 state capitals and he will win $42,000. b. Domingo will be able to identify fewer than 42 state capitals and will not win any money. c. Domingo will not be able to identify any state capitals and will not win any money. d. Domingo will choose to save all of the money he wins on the quiz show for his retirement.
In the long-run average total cost curve below, the:
A. movement from B to C reflects the law of diminishing returns. B. movement from A to B reflects diseconomies of scale. C. realization of economies of scale would shift the entire curve downward. D. movement from B to C reflects diseconomies of scale.
Relative to people who are eligible for group health insurance, individuals who are not covered by a group health insurance plan tend to pay:
A. more for health insurance regardless of their health condition. B. more for health insurance if they are unhealthy and less for health insurance if they are healthy. C. less for health insurance regardless of their health condition. D. less for health insurance if they are unhealthy and more for health insurance if they are healthy.