Consider the game known as the Prisoner's Dilemma. What's the dilemma?
a. By both not confessing, both get to the cooperative solution and minimize time in prison.
b. By both confessing, both get to the noncooperative solution and both serve significant time in prison.
c. As a group, they are better off cooperating by not confessing, but each player has an incentive to be first to confess in a double cross.
d. The problem is that the spies should never have been caught; they should move to Rio.
c
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If gold becomes acceptable as a medium of exchange, the demand for gold will ________ and the demand for bonds will ________, everything else held constant
A) decrease; decrease B) decrease; increase C) increase; increase D) increase; decrease
The Organization of Petroleum Exporting Countries (OPEC) is an international cartel. If the cartel were to hire a consulting firm to monitor the production rates of member countries, the economic reason for this monitoring is to:
A. Make sure that each member country is producing at an output level at which price equals marginal cost B. Make sure all the member countries produce at least their quotas so that there will be no oil shortage C. Detect those member countries which are depressing prices by producing more than their assigned quotas D. Make sure that the marginal revenue for the last barrel of oil sold by each member country is less than its price