According to the textbook, the owners of restaurants encourage tipping in order to:
A. sustain cooperation in a repeated prisoner's dilemma.
B. insure that their waiters earn enough money.
C. avoid playing a dominated strategy.
D. solve a commitment problem with their wait staff.
Answer: D
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The following list of characteristics are true of the pharmaceutical industry, except one.
a. Low variable cost b. Virtually guaranteed profits when the product is introduced c. High fixed cost d. Exclusive rights to market and sell patented products e. Segmentable markets
The formation of a trade bloc necessarily improves well-being worldwide because it is a step toward free trade.
Answer the following statement true (T) or false (F)
In the mid-1970s, the United States switched from running a trade ________ to running a trade ________.
A. deficit; surplus B. surplus; deficit C. balance; surplus D. deficit; balance