What will an indifference curve look like between two commodities that are perfect complements, such as right shoes and left shoes?
What will be an ideal response?
The indifference curve will be L-shaped. This shape indicates that more of either product, without any more of the other, would not make the consumer better off.
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In 2012, the imaginary nation of Dorados had a population of 8,000 and real GDP of 3,000,000 . During the year its real GDP grew by about 2.9%. Which of the following sets of growth rates is consistent with this growth in real GDP?
a. 2% population growth and 6% real GDP growth b. 6% population growth and 2% real GDP growth c. 4% population growth and 7% real GDP growth d. 7% population growth and 4% real GDP growth
Leverage:
A. is synonymous with risk-free investment. B. increases expected rate of return. C. leads to smaller changes in the investment's price. D. reduces risk.
Which of the following is considered a potential solution to some regulatory capture?
A. Bringing industry experts into the regulatory process. B. Creating a standard set of regulations for all industries. C. Deregulation of the industry. D. Government subsidies for firms in the industry.
Answer the following statement true (T) or false (F)
1) If one player in a game has a dominant strategy, the other player must also have a dominant strategy. 2) A player is said to have a dominant strategy when one of the options available is superior, regardless of what strategy the other player chooses. 3) If neither player has an incentive to deviate from the outcome of a game, the outcome is a Nash equilibrium. 4) A Nash equilibrium can only occur in repeated games. 5) One characteristic of sequential games is that they all have first-mover advantages.