Which of the following statements is true?
A. Government cannot remove individuals from a prisoner's dilemma setting and make them better off.
B. As long as government charges each individual a tax that is more than the gain received by being removed from a prisoner's dilemma setting, then government makes that individual better off.
C. Government can remove individuals from a prisoner's dilemma setting by changing the payoff matrix.
D. a and c
E. all of the above
Answer: C
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The long-run Phillips curve applies when the economy is at full employment, so the long-run Phillips curve is
A) upward sloping. B) downward sloping. C) vertical. D) horizontal. E) unnecessary.
Suppose you have two clients who need your services for two years. One agreed to pay you $50,000 one year from now and another $50,000 in two years while the other paid $35,000 after one year, but $65,000 after two years
Assuming an interest rate of 10%, which one has a higher present value? Round off to the nearest dollar.