Game theory provides us with a general approach to understanding the behavior of firms when their choices are interdependent
a. True
b. False
A
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Harry Truman is credited with the statement, “Give me a one-armed economist,” because economists are likely to say, “On the one hand, . . . on the other hand.” Why do economists “waffle” more than physicists or chemists?
What will be an ideal response?
Which of the following is an example of a discretionary fiscal policy during a recession?
A) A temporary tax cut to boost consumption B) A decrease in money supply to lower the federal funds rate C) A decrease in transfer payments to unemployed workers D) An increase in tax rates to increase revenue
For direct price discrimination to work effectively
a. The low-valued group should not be able to arbitrage b. Charge the same price to the different groups c. Both groups should have the same elasticity of demand d. None of the above
When European markets refused to allow U.S. beef to be imported because U.S. cows had been fed government-approved hormones, this was an example of
a. a tariff b. a quota c. free trade d. a nontariff barrier e. economic efficiency