What kind of game is shown in Scenario 13.13? A) Battle of the Sexes. B) Matching Pennies. C) Prisoners’ Dilemma. D) The Product Choice game. E) It is not possible to tell what kind of game it is because the strategies have not been identified. ANSWER D
Date: September 9th, 2020
Refer to Scenario 17.5. If low effort is exerted, expected income is A) $5000. B) $5500. C) $6000. D) $6500. E) $7000. ANSWER B
Date: September 9th, 2020
Consider the following statements when answering this question I. If the cost of producing each unit of output falls $5, then the short-run market price falls $5. II. If the cost of producing each unit of output falls $5, then the long-run market price falls $5. A) I and II are true. B) I is […]
Date: September 9th, 2020
The principal-agent problem of ownership vs. control of the corporation tends to get worse when A) stock in a corporation is held exclusively by a small number of people who control the company’s day-to-day operations. B) stock in the company is tightly held, but there are some “outsider” stockholders. C) stock in the company is […]
Date: September 9th, 2020
If the rate of return on the stock market is rm and the rate of return on a risk-free asset is rf, then A) rm – rf measures the risk, all of it nondiversifiable, one has to accept in the stock market. B) rm – rf measures the risk, all of it diversifiable, one has […]
Date: September 9th, 2020
Less than 50% of two-parent poor families have income from earnings. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
The Lerner index measures A) a firm’s potential monopoly power. B) the amount of monopoly power a firm chooses to exercises when maximizing profits. C) a firm’s potential profitability. D) an industry’s potential market power. ANSWER B
Date: September 9th, 2020
Which is true of output-choice models of oligopoly behavior? A) Both the Stackelberg and Cournot models can be constructed as sequential games. B) The Stackelberg, but not the Cournot, model can be constructed as a sequential game. C) The Cournot, but not the Stackelberg, model can be constructed as a sequential game. D) Neither the […]
Date: September 9th, 2020
If an asset’s beta is high, its A) diversifiable risk and expected return are high. B) nondiversifiable risk and expected return are high. C) diversifiable risk is high; its expected return is low. D) nondiversifiable risk is high; its expected return is low. E) total risk is high; its return could be any amount. […]
Date: September 9th, 2020
The presumption that ability breeds economic success finds empirical support. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
