If a market situation is an example of a prisoners’ dilemma, society can benefit by preventing the firms in the market from cooperating with each other.
Answer the following statement true (T) or false (F)
True
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If a country has a comparative advantage in producing a product, it may or may not have an absolute advantage in producing that product
Indicate whether the statement is true or false
Consider a small open economy with desired national saving of Sd = 200 + 10,000rw and desired investment of Id = 1000 - 5000rw. If rw = 0.05, then net exports equal
A) 100. B) 50. C) -50. D) -100.
If consumption is $6 billion, investment is $3 billion, government purchases are $1 billion, and GDP is $12 billion, then net exports must equal:
A. $22 billion. B. $10 billion. C. $2 billion. D. $12 billion.
When the price of tomatoes is $4, farmers supply 100,000 bushels. When price is $6, farmers supply 100,000 bushels. From this, we conclude that the
a. equilibrium price of tomatoes is $5 b. market-day supply curve is vertical at a quantity of 100,000 c. farmers are producing too many tomatoes d. supply curve for tomatoes is upward sloping e. market demand for tomatoes must be 100,000