In an oligopoly, which strategy - collusion or competition - resembles the choice of remaining silent in a prisoners' dilemma? Why?
Collusion for an oligopolist is similar to remaining silent in the prisoners' dilemma. In each case, those involved are acting more in the interest of the group as opposed to focusing on a more self-interested strategy. In addition, collusion generates a favorable group result with maximum economic profit in the industry; remaining silent generates a favorable group result with shortest prison sentences for all prisoners combined.
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If for some reason U.S. residents increase their purchases of foreign assets, then all else constant which curve in the market for foreign-currency exchange shifts and which direction does it shift? What happens to the exchange rate?
Net investment equals
A. depreciation plus GDP. B. gross investment minus final sales. C. GDP minus final sales. D. gross investment minus depreciation.