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Prisoner's Dilemma

Question 14 out of 4 points Consider the game known as the Prisoner's Dilemma. What's the dilemma?a. By both not confessing, both get to the cooperative solution and minimize time in prison.b. By both confessing, both get to the noncooperative solution and both serve significant time in prison.c. As a group, they are better off cooperating by not confessing, but each player has an incentive to be first to confess in a double cross.d. The problem is that the spies should never have been caught; they should move to Rio.Question 24 out of 4 pointsCooperation in repeated prisoner's dilemma situations seems to be enhanced by all of the following excepta. limited punishment schemes b. clarity of conditional rewards c. grim trigger strategy d. provocability-- i.e ., credible threats of punishment e. tit for tat strategyQuestion 34 out of 4 pointsCredibility in threats and commitments in sequential games is based ona. randomizing one's actions so they are unpredictableb. explicit communications with competitorsc. effective scenario planningd. analyzing best reply responsese. none of the aboveQuestion 44 out of 4 pointsWhen there is no Equilibrium (or no Nash Equilibrium), we expect that:a. the firms end up in the cooperative strategy.b. a firm will follow a randomized strategy.c. a firm will not care what it does.d. a firm will very likely have a dominant strategy.Question 54 out of 4 pointsCredible promises and hostage mechanisms can support a continuous stream of cooperative exchanges except whena. the promisor is better off fulfilling than ignoring his promiseb. neither party has a prior dominant strategyc. the hostage can be revoked for just causesd. the hostage is more valuable than any given exchangee. the hostage is difficult to replaceQuestion 64 out of 4 pointsWhich of the following pricing policies best identifies when a product should be expanded, maintained, or discontinued?a. full-cost pricing policyb. target-pricing policyc. marginal-pricing policyd. market-share pricing policye. markup pricing policyQuestion 74 out of 4 pointsThird-degree price discrimination exists whenever:a. the seller knows exactly how much each potential customer is willing to pay and will charge accordingly. b. different prices are charged by blocks of services. c. the seller can separate markets by geography, income, age, etc ., and charge different prices to these different groups. the seller will bargain with buyers in each of the markets to obtain the best possible price.Question 84 out of 4 pointsFirms that have a cover charge for their customers and charge for each item they purchase as well are exhibitinga. universal access price discrimination b. declining block price discrimination. c. mixed bundling price discrimination. d. two-part price discrimination. e. uniform pricing Question 94 out of 4 pointsThe segmenting of customers into several small groups such as household, institutional, commercial, and industrial users, and establishing a different rate schedule for each group is known as:a. first-degree price discriminationb. market penetrationc. third-degree price discriminationd. second-degree price discriminatione. none of the aboveQuestion 104 out of 4 points____ is the price at which an intermediate good or service is transferred from the selling to the buying division within the same firm.a. Incremental price b. Marginal price c. Full-cost price d. Transfer price e. none of the aboveQuestion 114 out of 4 pointsWhen someone contracts to do a task but fails to put full effort into the performance of an agreement, yet the lack of effort is not independently verifiable, this lack of effort constitutes aa. breach of contractual obligations b. denial of good guarantee c. loss of reputation d. moral hazard Question 124 out of 4 pointsGovernance mechanisms are designeda. to increase contracting costs b. to resolve post-contractual opportunism c. to enhance the flexibility of restrictive covenants d. to replace insurance e. none of the above Question 134 out of 4 pointsWhich of the following is not among the functions of contract?a. to provide incentives for efficient relianceb. to reduce transaction costsc. to discourage the development of asymmetric informationd. to provide risk allocation mechanismsQuestion 144 out of 4 pointsWhen retail bicycle dealers advertise and perform warranty repairs but do not deliver the personal selling message that Schwinn has designed as part of the marketing plan but cannot observe at less than prohibitive cost, the manufacturer has encountered a problem of ____.a. reliance relationshipsb. uncertaintyc. moral hazardd. creative ingenuitye. insurance relianceQuestion 154 out of 4 pointsWhen borrowers who do not intend to repay are able to hide their bad credit histories, a lender's well-intentioned borrowers shoulda. complain to regulatory authorities b. withdraw their loan applications c. offer more collateral in exchange for lower interest charges d. divulge still more information on their loan applications e. hope for a pooling equilibriumQuestion 164 out of 4 pointsThe ____ is equal to the some of the squares of the market shares of all the firms in an industry.a. market concentration ratio b. Herfindahl-Hirschman index c. correlation coefficient d. standard deviation of concentration e. none of the aboveQuestion 174 out of 4 pointsThe antitrust laws regulate all of the following business decisions except ____.a. collusion b. mergers c. monopolistic practices d. price discrimination e. wage levelsQuestion 184 out of 4 pointsThe lower the barriers to entry and exit, the more nearly a market structure fits the ____ market model.a. monopolistic competition b. perfectly contestable c. oligopoly d. monopoly e. none of the aboveQuestion 194 out of 4 pointsThe sentiment for increased deregulation in the late 1970's and early 1980's has been felt most significantly in the price regulation ofa. coal b. grain c. transportation d. automobiles e. electric power generationQuestion 204 out of 4 points____ occurs whenever a third party receives or bears costs arising from an economic transaction in which the individual (or group) is not a direct participant.a. Pecuniary benefits and costs b. Externalities c. Intangibles d. Monopoly costs and benefits e. none of the aboveQuestion 214 out of 4 pointsIf the acceptance of Project A makes it impossible to accept Project B, these projects are:a. contingent projects b. complementary projects c. mutually inclusive projects d. mutually exclusive projects e. none of the aboveQuestion 224 out of 4 pointsThe social rate of discount is best approximated by:a. the cost of government borrowingb. the opportunity cost of resources taken from the private sectorc. 3 percentd. 30 percente. none of the aboveQuestion 234 out of 4 pointsWhich of the following items is (are) not considered as part of the net investment calculation?a. the first year's net cash flowb. increase in net working capitalc. salvage of an old piece of equipment that is being replacedd. installation and shipping chargesQuestion 244 out of 4 pointsAll of the following except ____ are shortcomings of cost-benefit analysis.a. difficulty in measuring third-party costsb. difficulty in measuring third-party benefitsc. failure to consider the time value of benefits and costsd. difficulty of accounting for program interactionse. a and bQuestion 254 out of 4 pointsIn cost-effectiveness analysis, constant cost studies:a. are rarely usedb. attempt to specify the output which may be achieved from a number of alternative programs, assuming all are funded at the same levelc. are useless because they fail to adequately evaluate program benefitsd. try to find the least expensive way of achieving a certain objectivee. none of the above
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