Refer to the payoff matrix. Bob's Burgers and Sam's Sandwiches are competing restaurants in a small town. Both are considering adding pizza to their line of products. If this is a sequential game:
A. whoever moves first to add pizza will discourage the other from adding pizza.
B. neither firm will add pizza, regardless of who moves first.
C. both firms will add pizza, regardless of who moves first.
D. there is only one possible Nash equilibrium for this game.
A. whoever moves first to add pizza will discourage the other from adding pizza.
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From the perspective of supply-side economists, a cut in tax rates will:
A. Increase output but will increase the budget deficit B. Increase unemployment but will reduce the budget deficit C. Reduce unemployment but will increase the budget deficit D. Reduce unemployment and also reduce the budget deficit
If a country exports the products it can produce at a low opportunity cost and imports the products it would otherwise produce at a high opportunity cost, we say that such trade is based on the
A. arbitrage pricing theory. B. theory of absolute advantage. C. theory of factor endowments. D. theory of comparative advantage.