Economists have been interested in the following interaction: A person is allowed to split a sum of money between himself and another person. The other person can then accept the split or reject it, in which case neither person gets anything. Economists call this interaction the:
A. prisoner's dilemma.
B. sucker's payoff.
C. ultimatum game.
D. game of chicken.
Answer: C
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The fiscal agent for the U.S. federal government is
A) the United States Treasury. B) the Internal Revenue Service. C) the Comptroller of Currency. D) the Federal Reserve System.
Why does perfect competition shun advertising? Does advertising benefit a monopoly?
What will be an ideal response?
In 2006, McDonald's introduced the "Snack Wrap" and it turned out to be a successful product. In the marketplace for fast-food products, this success would be an example of:
A. derived demand. B. roundabout production. C. medium of exchange. D. consumer sovereignty.
Firms in a perfectly competitive industry are producing goods efficiently in the long run if each is producing at the minimum point of the
A) AVC curve. B) MC curve. C) LAC curve. D) AFC curve.