Consider the game known as the Prisoner's Dilemma. What's the dilemma?
a. By both not confessing, both get to the cooperative solution and minimize time in prison.
b. By both confessing, both get to the noncooperative solution and both serve significant time in prison.
c. As a group, they are better off cooperating by not confessing, but each player has an incentive to be first to confess in a double cross.
d. The problem is that the spies should never have been caught; they should move to Rio.
c
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A bank has $200 of reserves and $4,000 of deposits. It is just meeting its desired reserves and has no excess reserves. Thus the desired reserve ratio is
A) 25 percent. B) 10 percent. C) 5 percent. D) $200. E) 20 percent.
The branch of mathematics that analyzes situations in which players must make decisions and then receive payoffs based on their own and others' decisions is called game theory
a. True b. False Indicate whether the statement is true or false
When the economy suffers a temporary negative supply shock, the central bank's autonomous monetary policy to keep inflation at the target inflation rate leads to
A) more stable economic activities. B) a large deviation of output from its potential. C) divine coincidence. D) both B and C.
The major source of surplus value is:
a. Capitalist philanthropy b. Labor c. Spontaneous order d. Monopoly e. Above Subsistence wages