Refer to Table 14-4. How are the firms in this advertising game caught in a prisoner's dilemma?
A) They are not in a prisoner's dilemma because there is one clear strategy for each.
B) They would be more profitable if they refrained from advertising but each fears that if it does not advertise, it will lose customers.
C) Only the first mover is caught in a prisoner's dilemma because the second has a chance to observe and respond.
D) Since each firm is uncertain about the other's behavior, each will adopt a wait-and-see attitude which results in no increase in market share and no new customers.
B
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Is nominal GDP measured in terms of quantity or in terms of dollars? If dollars, the value of the dollar from what period? Is real GDP measured in terms of quantity or in terms of dollars? If dollars, the value of the dollar from what period?
What will be an ideal response?
An economic benefit of capital outflows is that they
A. reduce domestic saving. B. increase domestic investment. C. reduce domestic unemployment. D. create future income payment inflows.