When a Nash equilibrium is reached:
A. no one has an incentive to break the equilibrium by changing his strategy.
B. the outcome will only change if the "lead" player changes his strategy.
C. it must be true that all players have a dominant strategy.
D. None of these statements is true.
Answer: A
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Thomas Jefferson's main goals for land policy included all of the following except:
a. To assure secure property rights to the land owned by individuals. b. To establish a system for collecting property taxes on land owned by individuals. c. To provide revenues to the federal government through land sales. d. To encourage the spread of democratic institutions.
The market supply curve of a particular product indicates the total quantities
a. that are actually sold during a given time period b. that buyers are willing to purchase at alternative prices c. that sellers are willing and able to offer at alternative prices d. that sellers are willing to offer for sale e. of complements offered for sale
The judicial doctrine, being a monopoly or attempting to monopolize is not in itself illegal; to be illegal, an action had to be shown to have negative economic effects, is called:
a. the "big is bad" policy. b. the per se rule. c. predatory price-cutting policy. d. the rule of law. e. the rule of reason.