In game theory, a Nash equilibrium is defined as:
A) the dominant strategy of each player.
B) a set of strategies for which all players are choosing their best strategy, given the actions of the other players.
C) the set of strategies that result in the maximum payoff to each player.
D) the set of strategies chosen when the players in a game can cooperate with each other.
B
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A country is more likely to have net welfare gains when it imposes a tariff on a foreign monopolist if:
a. the tariff is small. b. the tariff is large. c. the tariff revenues are large. d. the deadweight losses are large.
A fall in the real interest rate, all other things held constant, will cause a country's ________ to ________
A) current consumption: increase B) current consumption: decrease C) terms of trade; improve D) terms of trade; worsen E) welfare level; improve