External costs are those costs:
A. that fall directly on an economic decision maker.
B. that fall indirectly on an economic decision maker.
C. that are imposed without compensation on someone other than the person who caused them.
D. that are both social costs and private costs.
C. that are imposed without compensation on someone other than the person who caused them.
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To approximate net annual cash flow, depreciation is
A. Added back to net income because it is an inflow of cash B. Subtracted from net income because it is an expense C. Subtracted from net income because it is an outflow of cash D. Added back to net income because it is not an outflow of cash
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.