As defined by Thomas Schelling, a “strategic move” is A) any strategy choice in a game. B) any strategy choice consistent with Nash equilibrium. C) any strategy choice in a sequential game. D) a strategy choice that influences the subsequent strategy choice of another player. E) a strategy choice that restricts the set of outcomes […]
Refer to Scenario 15.5. If Catherine stopped smoking, then what is the total amount that Catherine will save on life insurance premiums over the rest of her expected lifespan? A) $700 B) $14,000 C) $30,000 D) $42,000 E) $56,000 ANSWER D
Under what conditions will a firm’s long-run producer surplus exceed their economic rents? A) The firm requires land resources in the production process. B) The firm has access to specialized tools or technology that other firms do not own. C) The firm has access to knowledge or human capital that other firms do not own. […]
Tracking systems reduce classroom segregation. Indicate whether the statement is true or false ANSWER F
Segregation in public schools has declined since the early 1980s. Indicate whether the statement is true or false ANSWER F
The cartel of oil-producing nations (OPEC) once controlled about 80% of the world petroleum market, but OPEC’s market share has declined to about half of its former level. This outcome is a good example of how firms may have: A) relatively high short-run monopoly power that strengthens in the long run. B) relatively high short-run […]
The firms in a market have decided not to compete with one another and have agreed to limit output and raise price. A) This practice is known as concentrating and is legal in the United States and Canada. B) This practice is known as collusion and is illegal in the United States. C) In this […]
Macroeconomic forces are a powerful explanation for changes in the size of the poverty population. Indicate whether the statement is true or false ANSWER T
Under which of the following scenarios is it most likely that monopoly power will be exhibited by firms? A) When there are few firms in the market and the demand curve faced by each firm is relatively inelastic. B) When there are many firms in the market and the demand curve faced by each firm […]
Which is true about dominant strategies in the game in Scenario 13.15? A) $80 is dominant for Simple; $70 is dominant for Boring. B) $80 is dominant for Simple; $25 is dominant for Boring. C) $35 is dominant for Simple; $70 is dominant for Boring. D) $35 is dominant for Simple; $25 is dominant for […]
