A prisoner's dilemma illustrates situations in which:
A. resources with the lowest opportunity cost should be used first.
B. there is a conflict between the narrow self-interest of individuals and the broader interests of a group.
C. everyone does best when each person specializes in the activities in which he or she has a comparative advantage.
D. efficiency is an important social goal.
Answer: B
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When the Fed considers the rate of inflation to be undesirably high, it would most likely
a. encourage banks to provide loans by lowering the discount rate b. encourage banks to provide loans by raising the discount rate c. restrict bank lending by lowering the discount rate d. restrict bank lending by raising the discount rate e. restrict bank lending by lowering the federal funds rate
When a corporation experiences financial problems, bondholders are paid before stockholders
a. True b. False Indicate whether the statement is true or false