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The classic prisoner's dilemma involves two suspects, A and B, who are arrested by the police. Because the police have insufficient evidence for conviction on a key charge, they place the prisoners in isolation and offer each of them the following deal: If one testifies for the prosecution against the other and the other remains silent, the betrayer goes free and the silent accomplice receives a 20-year sentence. If both stay silent, both prisoners are sentenced to only six months in jail on a minor charge. If each betrays the other, each receives a five-year sentence. Each prisoner must make the choice of whether to betray the other or to remain silent. Neither prisoner knows for sure what choice the other prisoner will make.
Determine the main differences in microeconomics and macroeconomics? Give an example of a microeconomic and macroeconomic phenomenon.
Suppose you only have access to the rates of savings and population growth data but do not have access to the data on years of schooling (the last column of the table), use the Solow model to calculate the ratio of the steady state levels of incom..
Assume that the Wall Street analysts believe the industry has good growth prospects. The audit client is predicting a 20% increase in sales and a 27% increase in profits for the year under audit. 65% of all sales are made to just five customers.
Throughout the 1990s, the amount of foreign direct investment directed at both developed and developing nations increased dramatically. This trend reflects,An international U.S. based company sets up a production unit in a developing country with ..
The demand for polished bronze is given by P = 100 - Q/2. Production of polished bronze is controlled by Bronze Indentify BIs profit maximizing output and price. What is the cost to the town of removing the mercury pollution?
Explain why government regulation is needed, citing the major reasons for government involvement in a market economy and justify the rationale for the intervention of government in the market process in the U.S.
Wilpen Company, a price-setting firm, produces nearly 80 percent of all tennis balls purchased in the United States.
You have the alternative of leasing an asset for $100,000 a year, with payments to be made at the end of each year of use. This lease cannot be cancelled.
Expected changes in the U.S. real exchange rate vis-a-vis Switzerland and expected rates of inflation in the U.S. and Switzerland.
The demand curve for French plutonium shifts outward, at about the same time as the appearance of the foreign-exchange dollars. Illustrate what happens to the demand for French Francs.
The Federal Reserve's publishes the H.3 Statistical Release-Aggregate Reserves of Depository Institutions and the Monetary Base-weekly. Recent releases show that the composition of the supply of total reserves
Political business cycle: Do economic events affect presidential elections? To test this so-called political business cycle theory, Gary Smith 20 obtained the following regression results based on the U.S Presidential elections for the four yearl..
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