If firms execute a strategy that triggers a permanent punishment, the result in an indefinitely repeated game is
A) undefined.
B) the non-cooperative Nash equilibrium.
C) the collusive Nash equilibrium.
D) economically inefficient.
B
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A small country is an international borrower and its domestic demand for loanable funds increases. Consequently, the equilibrium quantity of loanable funds used in the country ________ and the country's international borrowing ________
A) does not change; increases B) does not change; does not change C) increases; increases D) increases; does not change
Suppose that in 2013, all prices in the economy increased by 50% and that all wages and salaries also increased by 50%. In 2013, you were
A) better off than you were in 2012 as your salary was higher than it was in 2012 and you could buy more goods and services. B) worse off than you were in 2012 as you could no longer afford to buy as many goods and services. C) no better off or worse off than you were in 2012 as the purchasing power of your salary remained the same. D) The purchasing power of your salary cannot be determined with the given information, so you cannot determine if you were better off or worse off in 2013 than in 2012.
Refer to the information provided in Table 21.10 below to answer the question(s) that follow. Table 21.10
Refer to Table 21.10. Assume that this economy produces only two goods Good X and Good Y. The value for this economy's nominal GDP in year 1 is
A. $110. B. $130. C. $140. D. $160.
Economists use the mechanism of supply and demand to study
A. inflation. B. unemployment. C. environmental protection. D. All of these responses are correct.