Consider the game tree in Figure 12.8. If both stores' payoffs in the bottom rectangle were $250 instead of $300, the outcome of the game will be that:
A. both stores choose to advertise.
B. both stores choose not to advertise.
C. Store A chooses to advertise but Store B chooses not to advertise.
D. Store B chooses to advertise but Store A chooses not to advertise.
Answer: A
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In a small open economy, an increase in government spending, while taxes remain the same, will be accompanied by
A) a decrease in private investment and an increase in privates saving. B) an increase in private investment and a decrease in private savings. C) a decrease in national savings and an increase in foreign borrowing. D) an increase in national savings and a decrease in foreign borrowing.
The baby boomer generation is just starting to retire, and waiting lists to get into nursing homes are on the rise. We could reasonably expect the demand for geriatric care to:
A. increase due to the number of buyers increasing. B. decrease due to the number of buyers increasing. C. increase due to expectations of future prices. D. decrease due to expectations of future prices.
Monetary policy can influence interest rates, which in turn can change spending
a. True b. False Indicate whether the statement is true or false
Refer to Figure 35.4 for the production possibilities curve for Chile: Chile's production and consumption of wine and wheat without trade are represented by point A. Suppose that Chile has a comparative advantage in the production of wine compared to the United States and specialization and trade take place between the two countries. The most likely new combination of wine and wheat available to Chile would be
A. D. B. A. C. C. D. B.