Refer to Game Matrix II. Assume this game is played sequentially. When is the Stackelberg equilibrium of this game also Pareto optimal?
Game Matrix II
The following questions refer to the game matrix below. Player A can play the strategies "High" and "Low," and Player B can play the strategies "Odd" and "Even."
a. Always.
b. When A is the first player.
c. When B is the first player.
d. Never.
b. When A is the first player.
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Suppose labor productivity differences are the only determinants of comparative advantage, and Brazil and Chile both produce only coffee and sugar. In Chile, either 5 units of coffee or 2 units of sugar can be produced in one day. In Brazil, a day of labor produces either 2 units of coffee or 1 unit of sugar. Which of the following statements is true?
a. Brazil has a comparative advantage in producing coffee. b. Brazil has a comparative advantage in producing both coffee and sugar. c. Chile has a comparative advantage in producing both coffee and sugar. d. Neither Chile nor Brazil has a comparative advantage in producing coffee. e. Brazil has a comparative advantage in producing sugar.
In recent years, the United States has:
A. exported more goods and services than it has imported. B. imported more goods and services than it has exported. C. realized an approximate balance in its imports and exports. D. experienced a falling absolute dollar amount of imports and a rising absolute dollar amount of exports.