Refer to the scenario above. Which of the following is likely to be true if the game is played only once?
A) The equilibrium outcome will be a Nash.
B) The equilibrium outcome will be socially inefficient.
C) No unique equilibrium will occur.
D) Multiple Nash equilibria will occur.
B
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Suppose the nominal interest rate is 4% and the rate of inflation is 3%. The real interest rate is therefore
A) 7%. B) 1%. C) 0%. D) -1%. E) none of the above.
Which of the following statements best describes income distribution in the United States?
(A) Most people earn the same income. (B) The richest 20 percent of the population has about 20 percent of the national income. (C) The richest 20 percent of the population has a much greater share of income than the poorest 20 percent. (D) The richest 20 percent of the population has slightly more income than the poorest 20 percent.