Tobacco companies did not resist the advertising ban instituted in 1970 because they actually increased profits by not being allowed to advertise
This ban forced these companies to abandon their dominant strategy of advertising and wind up at a cooperative outcome of not advertising. Prior to the ban, the tobacco companies were involved in playing A) a pure coordination game.
B) a prisoner's dilemma game.
C) an assurance game.
D) a battle of the sexes game.
B
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Trading partners should specialize in producing goods in accordance with comparative advantage, then trade and diversify in consumption because
a. out-of-pocket costs of production decline b. free trade areas protect infant industries c. economies of scale are present d. manufacturers face diminishing returns e. more goods are available for consumption
Miriam owns a small shop selling custom headbands and accessories, Last month, she sold 335 headbands for $10 each. According to the law of demand, what quantity might expect to If she drops the price to $6?
A. 415 B. 1.300 C. 290 D. 335
Cashing out capital gains in Virtual Currency System #3 (i.e., turning virtual capital gains into real world currencies) causes the nation's:
a. Monetary base to remain the same. b. M2 money supply to fall. c. M2 money multiplier to fall. d. M2 money supply to rise.
The laws that created the Fed give it some specific recommendations about what goals it should pursue so it has little discretion in making policy
a. True b. False Indicate whether the statement is true or false