Eventually the process of capital deepening comes to a halt as depreciation catches up with total saving.
Answer the following statement true (T) or false (F)
True
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What is meant by the first-mover advantage? How does commitment matter in a game with a first-mover advantage? a. Some games have a first-mover advantage and others do not. Suppose you were playing rock-paper-scissors as an extensive form game
First you choose rock, or paper, or scissors and then your opponent makes a choice. Is there a first-mover advantage in this game? b. Two firms are thinking of entering a new market. If only one enters, it will make high profits. If two firms enter, then both will suffer losses. Suppose that the game is played sequentially, with Firm 1 deciding first. Does this game have a first-mover advantage?
The largest quota subscriber of the International Monetary Fund (IMF) is
A) Japan. B) Germany. C) the United States. D) China.
The informativeness principle tells us that:
A. one must only use information that is necessary to develop compensation contracts, as long as the cost of obtaining the information is reasonable. B. one must use as much information as possible to develop compensation contracts, even if the cost of obtaining the information is unreasonable. C. information is overrated because employees can always lie about their performance, and detecting is costly and counter-productive. D. you must use as much information as possible to develop compensation contracts, as long as the cost of obtaining the information is reasonable.
In 1998 the Russian government defaulted on its bonds. According to the open-economy macroeconomic model, this should have
a. increased Russian interest rates and net exports. b. reduced Russian interest rates and net exports. c. increased Russian interest rates and reduced Russian net exports. d. reduced Russian interest rates and increased Russian net exports.