If Jet Cruises chooses to No Ad, Easy Sail should ________ and earn ________ million in net profit.
Jet Cruises wants to prevent Easy Sail from entering the sailboat market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Jet Cruises and Easy Sail have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) Ad; $4 B) No Ad; $10 C) No Ad; $2 D) Ad; $10
A) Ad; $4
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Which of the following are parts of the business cycles?
A) peak and potential GDP B) real GDP and potential GDP C) recession and expansion D) inflation and recession
Disadvantages of a consumption tax are
A. the administrative problems. B. the transitional problems. C. dealing with gifts and bequests. D. all of these answer options are correct.
Which of the following offers the best economic justification for subsidizing vaccinations for infectious disease on the basis of efficiency? a. Vaccinations create a positive externality for society because they reduce the chances the scope of epidemics. b. Vaccinations are a type of pollution that increase the chances and the scope of epidemics
c. A politician offering subsidized vaccinations may be able to get more votes from lower income people and get elected. d. None of the answers above are correct.
When the discount rate rises, the cost:
a. of loans to bankers, best customers goes up. b. of loans between banks rises. c. of international loans rises. d. to savings and loans of borrowing money from the public falls. e. to banks of borrowing from the Fed falls.