A trigger strategy is one in which a player
A) cooperates in the current period if the other player cooperated in the previous period, but cheats in the current period only if the other player cheated in the previous period.
B) cheats in the current period if the other player cooperated in the previous period, but cooperates in the current period if the other player cheated in the previous period.
C) cooperates in the current period if the other player has always cooperated, but cheats forever if the other player ever cheats.
D) cheats in the current period if the other player has always cheated, but cooperates forever if the other player has ever cooperated.
C
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When a U.S. company shifts its call-center operations overseas to reduce costs, it is applying the economic concept of
A) using assumptions to simplify. B) thinking at the margin. C) comparative advantage. D) diminishing returns.
If a country has a comparative advantage in the production of a good:
A) it can produce that good at a lower opportunity cost. B) it will find trade most beneficial when it trades with another country that has a comparative advantage in the same good. C) it will not find trade beneficial because other country(ies) won't have a comparative advantage in other goods. D) it must also have an absolute advantage in the good.