Answer the following statement true (T) or false (F)
1) Repeated games may involve either simultaneous or sequential decision making.
2) Negative-sum games do not exist because neither player has an incentive to play the game.
3) In a zero-sum game, the gains by one player will be exactly offset by the losses of the other.
4) In repeated games, players may be willing to accept lower payoffs in the short run in exchange
for greater net payoffs over the long run.
5) In repeated games, credible threats are necessary for the players to reach a Nash
equilibrium.
1) T
2) F
3) T
4) T
5) F
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For activities in which the benefits are concentrated and the costs widespread, governments are likely to undertake
a. too little of these activities relative to what would be efficient. b. too much of these activities relative to what would be efficient. c. exactly the amount of these activities that would be efficient. d. none of these activities.
Net exports will be negative if:
A. exports exceed imports. B. it is an open economy. C. imports exceed exports. D. it is a closed economy.
Wages will tend to be high in labor markets where supply is relatively high and demand is relatively weak.
Answer the following statement true (T) or false (F)
Industry A comprises only very few large firms engaged in stiff competition with each other. Industry A can best be described as
A. monopolistic competition. B. oligopoly. C. pure competition. D. pure monopoly.