Refer to the game between James and Theodore depicted in Figure 12.2. Which of the following is true?
A. If James chooses Up, Theodore's best response is to choose Right.
B. If James chooses Down, Theodore's best response is to choose Right.
C. If Theodore chooses Left, James's best response is to choose Down.
D. If Theodore chooses Right, James's best response is to choose Up.
B. If James chooses Down, Theodore's best response is to choose Right.
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Ann and Lynn have been arrested by the police, who have evidence that will convict them of robbing a bank. If convicted, each will receive a sentence of 6 years for the robbery
During questioning, the police suspect that Ann and Lynn are responsible for a series of bank robberies. If both confess to the series, each will receive 12 years in jail. If only one confesses, she will receive 4 years and the one who does not confess will receive 14 years. What is the equilibrium for this game? A) Both confess. B) Ann confesses and Lynn does not confess. C) Lynn confesses and Ann does not confess. D) Neither confess.
Which of the following would cause the money demand curve to shift to the right?
A. Inflation B. An increase in interest rates C. A decrease in GDP D. A technological advance
The world price of a commodity will settle at the level where a. supply and demand are equal within each country
b. the excess demand of the importing country is just equal to the excess supply of the exporting country. c. the excess demand in the exporting country is equal to the excess demand in the importing country. d. there is no excess demand in the exporting country.
How does the text define economic efficiency? Is this an absolute or a relative definition? Would another type of definition be preferable? Why or why not?