It is easier to sustain tacit collusion in an infinitely repeated game if:
A. the interest rate is lower.
B. the present value of cheating is higher and the interest rate is lower.
C. the present value of cheating is higher.
D. there are more players in the game.
Answer: A
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The goods and services that count toward GDP are defined in terms of:
A. the location of production, not the citizenship of the producer. B. the citizenship of the producer, not the location of production. C. total production of companies owned by citizens, regardless of the actual location of production. D. citizens producing within a country's borders.
The economy of Alpha operates according to Okun's law. In Alpha, potential GDP equals $500 billion, actual GDP equals $520 billion, and the natural rate of unemployment is 5 percent. What is the actual rate of unemployment in Alpha?
A. 4 percent B. 7 percent C. 1 percent D. 3 percent
Which one of the following is NOT a government failure?
A. The "bridge to nowhere" in Alaska B. The FEMA reaction to Hurricane Katrina C. Allowing federal budget deficits to be financed by foreigners while calling for further tax cuts to help incumbent politicians get reelected D. Water pollution
When conducting a study on success rates, which of the following would most likely be subject to survivor bias?
A. Of the 25 high schools located in Concordia County, this year's SAT scores were highest from students who attend Springdale High, the newest high school in the county. B. Of the 4 Starbucks locations that opened exactly 5 years ago in the same city, the location next to the concert arena has been the most financially successful. C. Of the 115 oceanfront hotels in Honolulu, only those with private beaches are able to charge more than $200 per night on average. D. Of the 75 oil exploration firms based in North Dakota, over half of those that recently filed for bankruptcy have been in business for 5 years or less.