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To each of the following answer T or F and justify your answer:
a) Suppose we have a game G with an epistemic background such that (1) every player has beliefs consistent with knowledge, (2) every player is rational and (3) every player knows the type of every other player. Then such a game has a Nash Equilibrium.
b) Suppose we have a game G with an epistemic background such that (1) every player has beliefs consistent with knowledge, (2) every player is rational and (3) every player knows the type of every other player. Then such a game has a unique Nash Equilibrium.
c) Suppose we have a game G with an epistemic background such that (1) every player has beliefs consistent with knowledge, (2) every player is rational and (3) every player knows the type of every other player. Then any action profile is a Nash Equilibrium.
Offer one good or service that you think would be considered highly price elastic ,one that you think is highly inelastic and Elucidate why.
Studies indicate that the changes in fiscal and monetary policy affect the 3 economic agents in the economy (households, firms and government). How do the changes in monetary and fiscal policy instruments affect you personally or work wise?
Cousin Edgar is always thinking of the next business idea. This time, he plans to invest in buying two gas stations. He reckons American consumers have come to accept the high gasoline prices, and estimates world prices for gasoline to increase even ..
A nation whose interest rate is rising more rapidly than interest rates in other nations can expect the international value of its currency to appreciate.
The people of Aquilonia deposited half of their currency into the banking system. If banks do not hold excess reserves
Illustrate what is the capital account balance. Illustrate what is the official settlements balance.
Should food and beverage advertising to children be banned? What about for other types of products as well? Is it unethical for food companies to target their ads towards children? In a period when most parents are working, how are children to be pro..
In The Wealth of Nations, Adam Smith wrote, "Every individual endeavors to employ his capital so that its produce may be of greatest value. He generally neither intends to promote the public interest, nor knows how much he is promoting it.
Imagine that last year, Jennifer earned $80,000 in salary, and consumed $50,000 in goods and $23,000 in services. How could we best categorize the remaining $7,000.
Elucidate why a currency depreciation leads to an improvement in a countries balance of trade.
Assume the market for a commodity is described by the demand and supply functions. Determine the equilibrium price and quantity in this market. Draw a graph to illustrate your answer and compute the consumer surplus and the producer surplus.
Describe the difference between Economic contraction and Economic expansion
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