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There are two players. Players move sequentially starting with player 1, followed by player 2, followed by player 1 again etc. Each time that a player moves, she can choose a number from the set {1, 2, 3, 4, 5, 6, 7, 8, 9, 10}. The first player who brings the sum of all chosen numbers to a total that is weakly larger 100 wins the game. Who wins the game in subgame perfect equilibrium? Explain.
Explain why if there is no formal or informal collusion in an oligopoly market firms are more likely to match a price cut by an individual firm than they are to match a price increase? If firms in an oligopoly do indeed behave in this way (matching..
Maritime Insurance Company offers insurance policies for recreational boats.
Compute the revised slope of the AE cure and the multiplier when you know that the imports and the marginal tax rate
Assume that Jamaicans' taxes, imports, and saving behavior means that two-thirds of any change in income will survive leakages of tax, import spending, and saving. With this information you can calculate the multiplier at work in the Jamaican economy..
Explain where in the U.S. balance of payments an entry would be recorded for each of the following:
Trade liberalization leads to a "race to the bottom" in environmental standards. Make the argument and counter-argument, present the following data;
"Price" in the statement of the Law of Supply refers to: A decrease in demand and an increase in supply will: When producers (say, of roads) are not able to make all consumers pay for enjoying their product (i.e., the roads), they tend to see a:
Prior to 1999, PepsiCo did not have a product that competed directly against Sprite and had to decide whether to introduce such a soft drink. By not introducing a lemon-lime soft drink, PepsiCo would continue to earn
Consider the following goods and services. Which are the most likely to be produced in a perfectly competitive industry? Which are not? Explain why you made the choices you did, relating your answer to the assumptions of the model of perfect competit..
What would happen to his attempt to attain a blanaced budget? How would the President tell that his economy is approaching equilibrium or getting better?
Suppose that all wages also prices in an economy are indexed to increase. Explain there can still be an increase tax.
According to the World Development Report, in which areas there is absence of progress in closing gender gaps within and across developing countries?
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