In which of the following games is it clearly the case that the cooperative outcome of the game is good for the two players and bad for society?
a. Two oil companies own adjacent oil fields over a common pool of oil, and each company decides whether to drill one well or two wells.
b. Two airlines dominate air travel between City A and City B, and each airline decides whether to charge a "high" airfare or a "low" airfare on flights between those two cities.
c. Two superpowers decide whether to build new weapons or to disarm.
d. In all of the above cases, the cooperative outcome of the game is good for the two players and bad for society
b
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Assuming all else equal, if households are optimistic about their future income, it is likely to cause a(n):
A) downward movement along their credit demand curve. B) upward movement along their credit demand curve. C) leftward shift of their credit demand curve. D) rightward shift of their credit demand curve.
Which type of unemployment is most likely to help an economy become more efficient?
a. Cyclical unemployment b. Voluntary unemployment c. Seasonal unemployment d. Frictional unemployment e. Underemployment