Refer to the game in Scenario 13.7. If each player chose a maximin strategy, the outcome would be
A) $69,000, $69,000.
B) $0, -$1000.
C) -$1000, $0.
D) $0, $0.
E) a mixed strategy equilibrium.
D
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When a government allows raw materials and other intermediate products to enter a country duty free, this generally results in a(an)
A) effective tariff rate less than the nominal tariff rate. B) nominal tariff rate less than the effective tariff rate. C) rise in both nominal and effective tariff rates. D) fall in both nominal and effective tariff rates. E) rise in only the effective tariff rate.
You and a friend are arguing over the issue of the nonneutrality of money. You believe that money is not neutral, and to prove your point you would cite all of the following except
A) large gold discoveries that increased the money supply preceded an economic boom. B) a change in monetary institutions preceded a boom or recession. C) a change in the leadership of the Fed and its policy was followed by noticeable changes in the money supply and a recession or inflation. D) the fact that every recession was preceded by a drop in the money supply.
Suppose that the Fed announces a low-money-growth policy to control inflation and workers sign low-wage contracts as a result. If instead, the Fed had implemented a high-money-growth policy, which of the following would not occur?
a. The unemployment rate would increase. b. The Fed's stated policy would be time inconsistent. c. The unemployment rate would be less than the natural rate. d. The Fed would not achieve credibility through its actions. e. The rate of inflation would be higher than expected.
Suppose Hannah's Cookies sells cookies in a perfectly competitive market. It sells 200 cookies per week at a price of $2 per cookie. If it decides to increase the price to $2.50 per cookie, then its sales _____
a. will decrease by 150 cookies per week b. will decrease by more than 200 cookies per week c. will drop down to zero d. will decrease by 100 cookies per week