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Imagine two players in the following game:
Each of the players chooses an (integer) amount between $180 and $300.
Both players receive the lower amount.
Five dollars are transferred from the player who chose the larger amount to the player who chose the smaller one.
In the case that the same amount is chosen by both players, each receives that amount and no transfer is made.
Which strategies survive rationalizability?
More people in high-income countries than in low-income countries tend to believe that rapid rates of economic growth are not desirable. Which of the following best explains what is actually happening to real per capita GDPs of countries?
A vendor is offering an extended repair contract on a machine. The firm's experience is that this will cover repair costs over the next four years of $200, $200, $400 and $500. At 6%, what is the extended repair contract worth now?
Briefly describe the barter system and its potential to be inefficient. What is money? How did money alleviate some of the aforementioned inefficiencies and assist in the development of markets in the acient world?
Within the past 5 years a certain country ended its almost 2-year peg (fixed) of its own currency to the US dollar. What country was this? What year did it end? Why did it end its fix to the US dollar?
Summarize in words the predictions and limitations of the theoretical framework developed for the first exam: that is the predictions for the effect of capital accumulation.
Contrast the difference between temporary and permanent damages on the incentives of people to build new houses near the cement factory
q.assume that you live in a simple economy in which only three goods are produced and traded fish fruit and meat.
Assume that Erin now has preferences such that she prefers the cash gift. Using a separate graph from part (a), graph Erin's optimal choice before and after gift.
explain how will you guide him regarding the redressal forums, the nature of making complaints and the working of the agency.
Elucidate what prices he should charge in two markets. Illustrate quantities be should sell in the two markets.
Suppose there are two types of people who need health insurance; high-risk and low-risk consumers. High-risk consumers have a relatively high probability of needing expensive medical care and on average incur $2,000 of medical expenses per year.
Describe the magnitude of crowding-out that results from the above fiscal expansion .Show the transition dynamics that results.
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