In the Battle of the Sexes game, Man likes to go to watch football, while Woman likes to go to the mall. Both of them would rather go together than go alone. They decide to show up to one of these places without contacting each other. A game like this will have
A. no Nash equilibrium strategies.
B. one dominant strategy for both the players.
C. a Nash equilibrium in mixed strategies.
D. a dominant strategy for Man and none for Women.
Answer: C
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The importance of barriers to the adoption of technologies is supported by research by
A) P. Romer. B) R. Lucas. C) S. Parente and E. Prescott. D) G. Glomm and B. Ravikumar.
Which of the following assertions is not correct about the multilateral approach to free trade?
a. The multilateral approach has the potential to result in freer trade than does the unilateral approach. b. The multilateral approach may have a political advantage over the unilateral approach. c. The multilateral approach is simpler than the unilateral approach. d. NAFTA and GATT both represent multilateral approaches to free trade.
After a speculative attack has been successful, and a country is forced to devalue its currency, it is common to see many local business firms driven to bankruptcy. This most commonly occurs because _____
a. nobody ever wants to invest in a country that just suffered a devaluation b. many local firms took foreign loans (denominated in, say, dollars), and they cannot repay them at the new exchange rate c. the WTO forces troubled firms to show profits or make way for new, more efficient firms d. local firms cannot compete with their foreign competitors at the new prices after the devaluation e. many local firms do not know how to deal with the complicated financial operations involved in a speculative attack
Banks primarily make a profit by ______.
a. charging their borrowers more interest than they give their depositors b. paying a portion of customer deposits for claims, and keeping the rest c. earning a commission from each sale of stock they make d. charging fees each time they facilitate an exchange