The beauty of Nash's equilibrium concept is that
a. all games have one.
b. all games have no more than one.
c. all games have a rich set to choose from.
d. it is a Pareto optimum.
a
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An increase in the income tax rate leads to a large increase in deadweight loss if ________
A) the labor supply curve is highly elastic B) the labor supply curve is perfectly inelastic C) the labor demand curve is elastic D) the labor demand curve is perfectly inelastic
Historical evidence suggests that:
A) command economies perform better than free economies in the long run. B) free economies perform better than command economies in the long run. C) social surplus is maximized in a command economy. D) social surplus is minimized in a free economy.
Why do skilled workers earn relatively higher wages than unskilled workers?
a. The marginal productivity of skilled workers is low. b. The marginal cost of hiring skilled workers is low. c. The supply of skilled workers is relatively less. d. There is an abundant supply of skilled workers. e. The marginal cost of hiring unskilled workers is high.
In a long-run perfectly competitive equilibrium,
a. the typical firm will earn an economic profit b. price exceeds marginal cost c. barriers to entry are established by entrenched firms d. the typical firm will earn a normal profit e. marginal cost exceeds average cost