Game theory is most useful for analyzing

The principle of comparative advantage explains how

a. one nation can take advantage of another one through international trade. b. two nations may engage in mutually beneficial trade, even though one of them is more productive than the other. c. one individual can take advantage of another through international trade. d. some people are good at producing everything, while others have no comparative advantages. e. some nations end up with large trade surpluses.

If a family earned an additional $6,000 and, as a consequence, sustained a reduction of $3,600 in government benefits, the implicit marginal tax rate for this family would be

a. zero. b. 45 percent. c. 60 percent. d. 75 percent.