When economists model a game with three players instead of two, what is different about the payoff matrix and the payoffs listed in each cell of the matrix?
What will be an ideal response?
The payoff matrix contains a separate page for each possible strategy available to one player. On each page, an ordinary payoff matrix summarizes the choices available to the remaining two players, given the strategy chosen by the first player. Each cell shows three payoffs, with the first going to the row player, the second to the column player, and the third to the page player.
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The prospect of future deficits
A) would prompt government to vastly expand discretionary spending. B) limits the ability of government to conduct fiscal policy in the near future. C) requires a government to eliminate all entitlement spending. D) encourages government to conduct expansionary fiscal policy.
In 2002, President Bush imposed a tariff on imported steel. He did so in response to rent seeking by
A) domestic steel consumers. B) domestic steel producers. C) foreign steel consumers. D) foreign steel producers. E) foreign politicians.