Consider the prisoner's dilemma model where two criminals have two options (confess or deny), and each criminal must make their decision without speaking to the other criminal first
If they both confess they each get 3 years, if only one confesses then he gets 1 and his partner gets 10, and if neither confesses then they each get 0. They are in fact both guilty. In this game, the Nash equilibrium is where A) both confess.
B) neither one confesses.
C) only one will confess.
D) It is impossible to say.
A
Economics
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Referring to a bank's t-account, the difference between total assets and total liabilities is called
A) leverage. B) reserves. C) deposits. D) equity.
Economics
If the costs of labor and capital increase in the same proportion, the isocost line will
A) stay the same. B) shift outward in a parallel fashion. C) rotate inward around the point where only capital is employed in production. D) shift inward in a parallel fashion.
Economics