Which of the following is a method by which a poor country might import technological change without having to incur the heavy expense of research and development (not to mention human and physical capital formation) out of its own saving?
A) Copy modern products made in rich countries.
B) Purchase imported machinery that embodies the latest technology.
C) Obtain investment by foreign firms.
D) All of the above.
D
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In a beauty contest game such as predicting the average of respondents choosing a number between 0 and 100
A) the outcome is not normally the Nash equilibrium for the game. B) the winner usually exhibits level-3 reasoning. C) the winner must understand the non-rationality of the players. D) All of the above.
Suppose a company trying to increase profits, markets its laptops at a price that is higher than the equilibrium price of laptops in the market. Which of the following is likely to happen as a consequence?
a. The equilibrium price of laptops will increase to the level charged by this brand. b. There will be an excess supply of this particular brand of laptops in the market. c. There will be an excess demand for this particular brand of laptops in the market. d. The equilibrium price of laptops will decrease.