Economists use game theory to analyze oligopolies because
A) it is more enjoyable for economists and students to learn by playing games.
B) game theory is useful in understanding the actions of firms that are price takers.
C) game theory helps us to understand why interactions among firms are crucial in determining profitable business strategies.
D) real markets are too complicated to analyze without using games.
C
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Which of the following is one of the most important benefits of money in an economy?
A) Money allows for the accumulation of wealth. B) Money makes exchange easier, leading to more specialization and higher productivity. C) Money encourages self-sufficiency and therefore increases economic stability. D) Money allows for the exchange of goods and services.
Most of the money that we pay to foreigners to finance our current accounts deficit
A. flows back to the U.S. in investment funds. B. stays abroad where it circulates as currency. C. ends up in the hands of drug dealers. D. is used by foreign governments as reserves.