If both players in a game have dominant strategies, we say that the game has: A) a constant sum. B) a nonconstant sum. C) independence of irrelevant alternatives. D) an equilibrium in dominant strategies. ANSWER D
Date: September 9th, 2020
What is the welfare impact of a subsidy policy? A) Producer surplus increases, consumer surplus declines, and total welfare declines. B) Producer and consumer surplus increase, and these gains are larger than the government cost. C) Producer and consumer surplus increase, and these gains are smaller than the government cost. D) Producer surplus increases, consumer […]
Date: September 9th, 2020
Social equality implies the absence of class stratification. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
Medical histories used by insurance firms allow them to A) identify high-risk people, so they can be denied insurance and premiums kept down for low risk people. B) increase the number of policies issued, raising premiums as a result. C) increase the number of policies issued, lowering premiums as a result. D) lower the number […]
Date: September 9th, 2020
A lighthouse is a public good A) because it doesn’t cost any more to light the way for 105 ships than it does to light the way for 104 ships, but for no other reason. B) because there is no way to prevent those who haven’t contributed to the lighthouse from seeing better because of […]
Date: September 9th, 2020
If a firm can earn a profit stream of $50,000 per year for 10 years, that profit stream is worth A) more than $500,000 today. B) $500,000 today. C) less than $500,000 today, but a positive amount. D) nothing today E) some amount, but whether it is more, less or the same as $500,000 cannot […]
Date: September 9th, 2020
The area below the demand curve and above the price line measures A) consumer surplus. B) economic profit. C) elasticity of demand. D) the total value obtained from consuming the good or service. ANSWER A
Date: September 9th, 2020
When states make car insurance mandatory for all drivers, it A) raises rates for everyone because it brings bad drivers into the pool. B) raises rates for high-risk drivers. C) may lower rates for all drivers to the extent that it keeps low-risk drivers in the pool. D) prevents high-risk drivers from “selecting out,” to […]
Date: September 9th, 2020
Credit histories allow firms to A) identify high-risk borrowers, so they can be eliminated and interest rates kept down for others. B) increase the number of credit cards issued, and interest rates go up as a result. C) increase the number of credit cards issued, and interest rates go down as a result. D) lower […]
Date: September 9th, 2020
If clerical workers in your state voted to have a union represent them in negotiations with employers, they would have monopoly power in wage determination. Employers would be in no position to exert monopsony power in their employment of clerks in this market due to the large number of employers in the market. Labor supply […]
Date: September 9th, 2020
