A Nash equilibrium is a set of strategies that are mutual:
a. best responses.
b. dominant strategies.
c. Pareto optima.
d. all of the above.
a
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You are closely following the elections in your country this year
The two main candidates who are running for president belong to the two biggest parties that are on opposing ends of the political spectrum—the Conservative Right and the Left Alliance. There are also a few independent candidates. You have decided that you will cast your vote depending on each candidate's stance on various issues like foreign policy, gun rights, taxes, gay marriage, and healthcare. As the campaigns heat up, you notice that the viewpoints expressed by both parties seem to converge to the center rather than being extreme left or right opinions. Given that the candidate with the highest number of votes wins the elections, what do you think could explain this convergence?
What issue is there regarding housing and the measurement of GDP?
A) residential investment is measured using current house prices, not construction prices. B) houses are a capital and a consumption good. C) one does not know whether a house will be owned or rented when it is built. D) mobile homes are not counted.
In an open economy, ______ than in a closed economy.
a. expansionary policy will have a greater influence on aggregate demand b. contractionary policy will have a greater influence on aggregate demand c. both contractionary and expansionary policy will have a greater influence on aggregate demand d. both contractionary and expansionary policy will have a smaller influence on aggregate demand
Taylor's marginal utility from watching movies and from eating out (in utils) is shown in the accompanying table. Taylor spends exactly $100 every month on these two forms of entertainment; the price of each movie is $10 and the price of each dinner is $20.MoviesPer MonthMarginal UtilityPer MovieDinners OutPer MonthMarginal UtilityPer Dinner160115025021403203120454100Â Taylor's optimal combination of movies and eating out is:
A. 3 movies and 3 dinners. B. 4 movies and 3 dinners. C. 2 movies and 4 dinners. D. 3 movies and 4 dinners.