Which Outcome Is The Nash Equilibrium In This Game Case Study

Register to read the introduction… Refer to Table 17-12. Which outcome is the Nash equilibrium in this game?
a. Up-Right
b. Up-Left
c. Down-Right
d. Down-Left

8.

The Condorcet paradox
a. proved that the Arrow impossibility theorem is wrong.
b. was proved wrong by the Arrow impossibility theorem.
c. serves as an example of the Arrow impossibility theorem.
d. pertains to voting systems, whereas Arrow's Impossibility Theorem does not.

9.

When each voter has a most-preferred outcome for the expenditure on a particular government program, majority rule will produce the outcome
a. preferred by the mean (average) voter.
b. preferred by the median voter.
c. that causes the political party in power to increase its power.
d. defined by Arrow’s Impossibility Theorem.

10. The median-voter theorem explains why
a. politicians take extreme stands on issues.
b. voters are attracted to political outsiders.
c. two opposing politicians tend to take opposite sides of each issues.
d. politicians tend to take middle-of-the-road positions.

Table 22-8

Percent of electorate
First choice
Second choice
Third choice
Fourth choice

Type 1
32
W
X
Y
Z

Voter Type
Type 2
Type 3
20
15
X
Z
Z
W
W
Y
Y …show more content…
radios and Iceland has an absolute advantage in the production of coolers.
c. both goods and Iceland has an absolute advantage in the production of neither good.
d. neither good and Iceland has an absolute advantage in the production of both goods.
27. Refer to Table 3-2. Aruba has a comparative advantage in the production of
a. coolers and Iceland has a comparative advantage in the production of radios.
b. radios and Iceland has a comparative advantage in the production of coolers.
c. both goods and Iceland has a comparative advantage in the production of neither good.
d. neither good and Iceland has a comparative advantage in the production of both goods.
Figure 5-2
Price

Pa
Pb

D1
D3

D2
Quantity

28. Refer to Figure 5-2. As price falls from Pa to Pb, which demand curve represents the most elastic demand?
a. D1
b. D2
c. D3
d. All of the above are equally elastic.
29. Studies indicate that the price elasticity of demand for cigarettes is about 0.4. A government policy aimed at reducing smoking changed the price of a pack of cigarettes from $2 to $6. According to the midpoint method, the government policy should have reduced smoking by
a. 30%.
b. 40%.
c. 80%.
d. 250%.
Figure 5-8
10

Price

9
8
7
6
5
4
3
2

D