If two nations are equally armed it is highly likely that neither will initiate a conflict. a. True b. False ANSWER a
Date: September 9th, 2020
Which of the following is a fair bet based on the toss of an unbiased coin? A) head: receive $5, tail: lose $5 B) head: receive $2, tail: lose $3 C) head: receive $0.5, tail: lose $1 D) head: lose $3, tail: lose $3 ANSWER A
Date: September 9th, 2020
The above figure shows the payoff for two firms, A and B, that must each choose to sell either at a high or low price. Determine the dominant strategies for each firm (if any) and the Nash equilibria (if any). What will be an ideal response? ANSWER For both firms the dominant strategy is […]
Date: September 9th, 2020
In order to maximize their political benefits, legislators need only pay attention to the special interests in favor of a particular program. a. True b. False ANSWER b
Date: September 9th, 2020
Workers work for after-tax wages, thus an income tax represents a reduction in the effective wage rate. a. True b. False ANSWER a
Date: September 9th, 2020
If government is to allocate resources efficiently, _____. a. competition among local governments should be limited in scope b. local governments should transfer powers to state governments whenever possible c. public goods should always be provided by the federal government d. public goods should be devolved to local governments whenever feasible ANSWER d
Date: September 9th, 2020
The optimal sharing group for national defense is the size of a nation. a. True b. False ANSWER b
Date: September 9th, 2020
Why is collusion more likely in a repeated game? What will be an ideal response? ANSWER First, a firm can signal other firms that it wishes to cooperate in one period, which could lead to collusion in subsequent periods. Second, a firm can punish a firm for not restricting output. The threat of punishment […]
Date: September 9th, 2020
Imputed rental income is considered taxable income to the homeowner under current tax law. a. True b. False ANSWER b
Date: September 9th, 2020
Which of the following is an example of a hidden characteristic? A) After purchasing life insurance, Billy joins the bomb squad. B) Only the owner knows about her car defects. C) Bobby let his employer know about his college degree. D) Sally provides her driving record to the car insurance company. ANSWER B
Date: September 9th, 2020
