Assume that the characteristic functions for individuals 1,2, and 3 are given by V(1) = $20, V(2) = $16, and V(3) = $10 respectively, and value created by the coalition V(1,2,3) = $60 . If the payoff to individual 1 is $30, and that to individuals 2 and 3 is $15 each, which of the following statements is true?
a. The given allocation is within the core.
b. 2 and 3 will withdraw from the coalition.
c. 2 will block the imputation.
d. This allocation is individually rational for all.
C
Economics
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Expansionary fiscal policy crowds out both domestic investment and net exports
Indicate whether the statement is true or false
Economics
In periods of restrictive monetary policy, which of the following industries are likely to feel a disproportionately large impact of the policy?
A. The auto industry. B. Soft drink companies such as Coke and Pepsi. C. Cell phone service providers. D. Fast-food restaurants.
Economics