ART A Which of the following statements is true? A. In a finitely repeated prisoner’s dilemma, players choose to cooperate in every period. B. In a Nash equilibrium, each player has a dominant action. C. A Nash equilibrium is always characterized by the highest payoffs. D. A subgame perfect equilibrium is a Nash equilibrium. E. None of the other answers is correct. PART B Which of the following statement is true: A. Since the subsidy increases both consumer surplus and producer surplus, subsidy does not create any deadweight loss. B. None of the other answers is correct. C. In general, the burden of the tax falls on the more elastic side of the market. D. There can never be price ceiling and price floor that are simultaneously binding in the same market. E. The economic incidence of the tax depends on who must legally pay the tax
ART A Which of the following statements is true? A. In a finitely repeated prisoner’s dilemma, players choose to cooperate in every period. B. In a Nash equilibrium, each player has a dominant action. C. A Nash equilibrium is always characterized by the highest payoffs. D. A subgame perfect equilibrium is a Nash equilibrium. E. None of the other answers is correct. PART B Which of the following statement is true: A. Since the subsidy increases both consumer surplus and producer surplus, subsidy does not create any deadweight loss. B. None of the other answers is correct. C. In general, the burden of the tax falls on the more elastic side of the market. D. There can never be price ceiling and price floor that are simultaneously binding in the same market. E. The economic incidence of the tax depends on who must legally pay the tax
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
PART A
Which of the following statements is true?
A. In a finitely repeated prisoner’s dilemma, players choose to cooperate in every period.
B. In a Nash equilibrium, each player has a dominant action.
C. A Nash equilibrium is always characterized by the highest payoffs.
D. A subgame perfect equilibrium is a Nash equilibrium.
E. None of the other answers is correct.
PART B
Which of the following statement is true:
A. Since the subsidy increases both consumer surplus and producer surplus, subsidy does not create any deadweight loss .
B. None of the other answers is correct.
C. In general, the burden of the tax falls on the more elastic side of the market.
D. There can never be price ceiling and price floor that are simultaneously binding in the same market.
E. The economic incidence of the tax depends on who must legally pay the tax.
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