Refer to the above table. If opportunity costs are constant and the two countries trade
A) the United States should specialize in computers and Mexico in bicycles.
B) the United States should specialize in bicycles and Mexico in computers.
C) the United States should specialize in both bicycles and computers, and Mexico should specialize in neither.
D) there will be no trade because they are so different.
A
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Consider a two-person, two-strategy game in which only pure strategies are played. Such a game must have at least one
a. Nash equilibrium. b. player with a dominant strategy. c. Pareto-optimal outcome. d. outcome that is both a Nash equilibrium and Pareto optimal.
A price-discriminating monopoly
A) sells a larger quantity than it would if it were a single-price monopoly. B) is illegal. C) cannot offer discounts. D) cannot control the price of its product. E) makes a smaller economic profit than it would if it were a single-price monopoly.
Lack of prudential regulation of capital markets in East Asia often led to
a. borrowing short term and lending long term b. borrowing and lending short term c. borrowing and lending long term d. borrowing long term and lending long term e. very little borrowing
What are some of the explanations offered for why the U.S. economy experienced a period of relative stability from 1950-2007?
What will be an ideal response?