Which of the following statements about markets and prices is correct?
A. In a market system, buyers and sellers must be in face-to-face contact with each other
B. Prices affect the distribution of goods in a market system but not the allocation of resources
C. In a market system, prices serve to ration goods and services to consumers
D. The operation of a market system has little, if any, effect on the distribution of income in the economy
Answer: C
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"A Nash equilibrium occurs when both parties to a game end up worse off as a result of the decisions that are made." Is the previous definition of a Nash equilibrium correct or incorrect?
What will be an ideal response?
The importance of the ceteris paribus assumption is that it: a. allows one to separate normative economic issues from positive economic ones
b. allows one to generalize from the whole to the individual. c. allows one to analyze the relationship between two variables apart from the influence of other variables. d. allows one to hold all variables constant so the economy can be carefully observed in a suspended state.