According to the figure shown, Sarah:
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
A. should put forth low effort, regardless of what Joe chooses to do.
B. should put forth high effort, regardless of what Joe choose to do.
C. does not have a dominant strategy.
D. should take the first-mover advantage and put forth low effort.
A. should put forth low effort, regardless of what Joe chooses to do.
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What can be expected to happen in a country that enacts trade barriers?
A) The rate of population growth will decrease. B) The rate of economic growth will decrease. C) The rate of immigration will increase. D) The rate of technological innovation will increase.
Which of the following is the most likely result of financial intermediaries?
A) increased funds available to borrowers B) higher transaction costs C) higher information costs D) lower information cost but higher transaction costs
The general-equilibrium analysis of a minimum wage applied to only some sectors of the economy suggests that
A) workers in all sectors will face increased wages. B) some workers in the covered sectors will lose their jobs and remain unemployed. C) some workers originally employed in the covered sectors will move to the uncovered sectors, driving down wages in the uncovered sectors. D) all workers will be worse off.
In competitive markets where firms are observed to be exiting the market, the firms that remain will obtain economic profits in the long run
a. True b. False Indicate whether the statement is true or false