Game theory:
A. is the analysis of how people (or firms) behave in strategic situations.
B. is best suited for analyzing purely competitive markets.
C. reveals that mergers between rival firms are self-defeating.
D. reveals that price-fixing among firms reduces profits.
Answer: A
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Suppose the government has a budget deficit of $2 billion. If the Ricardo-Barro effect is correct, then how much crowding out of investment occurs?
A) exactly equal to $2 billion dollars B) more than $2 billion C) some crowding out occurs, but less than $2 billion D) No crowding out occurs and investment does not change. E) No crowding out occurs because investment increases by $2 billion.
Because people are more willing to trade away goods that they have in abundance and less willing to trade away goods of which they have little, indifference curves are ___________
Fill in the blank(s) with correct word