Refer to the scenario above. If there is fairness penalty of $12, ________
A) this game will no longer have a Nash equilibrium
B) this game will have two Nash equilibria
C) Nash equilibrium will occur when both of you choose "friend"
D) Nash equilibrium will occur when both of you choose "foe"
B
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Referring to a production possibilities curve and the goods being compared, depict the economic event. The bubonic plague (Black Death) in the 1300s killed one-third of Europe's population (capital goods vs. consumer goods).
A. A movement from a point inside the curve to a point on or near the curve B. A movement from a point on or near the curve to a point inside the curve C. A shift in the entire curve to the right (outward) D. A shift in the entire curve to the left (inward)
Give an example of a price floor. Draw a corresponding diagram and explain why there is a continuing surplus.
What will be an ideal response?
Over twenty years ago the city of Washington D.C. was facing a budgetary shortfall. In a plan to increase tax revenue the mayor and city council agreed to raise the excise tax on gasoline
Typically for goods like gasoline which are price inelastic this should have led to an increase in tax revenue. However, just the opposite happened – tax revenue plummeted! What could explain this seemingly paradoxical result?
What are public assistance programs?
What will be an ideal response?