Eco 550 final exam part 2

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·         Question 1

4 out of 4 points


Non-cooperative sequential games can incorporate all the following features except


·         Question 2

4 out of 4 points


If one-time gains from defection are always less than the discounted present value of an infinite time stream of cooperative payoffs at some given discount rate, the decision-makers have escaped


·         Question 3

4 out of 4 points


Cooperation in repeated prisoner’s dilemma situations seems to be enhanced by all of the following except


·         Question 4

4 out of 4 points


The Prisoner’s Dilemma involves two spies who are held in separate soundproof rooms.  But even if the two spies could communicate, what makes it difficult for them to achieve the cooperative solution (both not confessing)?


·         Question 5

4 out of 4 points


When there is an Equilibrium (or a Nash Equilibrium), we expect that:


·         Question 6

4 out of 4 points


Electricity pricing that varies in its billing expense throughout the day is called


·         Question 7

4 out of 4 points


The following are possible examples of price discrimination, EXCEPT:


·         Question 8

4 out of 4 points


Firms that have a cover charge for their customers and charge for each item they purchase as well are exhibiting


·         Question 9

4 out of 4 points


Third-degree price discrimination exists whenever:


·         Question 10

4 out of 4 points


To maximize profits, a monopolist that engages in price discrimination must allocate output in such a way as to make identical the ____ in all markets.


·         Question 11

4 out of 4 points


To accomplish its purpose a linear profit-sharing contract must


·         Question 12

4 out of 4 points


When borrowers who do not intend to repay are able to hide their bad credit histories, a lender’s well-intentioned borrowers should


·         Question 13

4 out of 4 points


Which of the following are not approaches to resolving the principal-agent problem?


·         Question 14

4 out of 4 points


When manufacturers and distributors establish credible commitments to one another, they often employ


·         Question 15

4 out of 4 points


When 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 ____.


·         Question 16

4 out of 4 points


The antitrust laws regulate all of the following business decisions except ____.


·         Question 17

4 out of 4 points


The lower the barriers to entry and exit, the more nearly a market structure fits the ____ market model.


·         Question 18

4 out of 4 points


The ____ is equal to the some of the squares of the market shares of all the firms in an industry.


·         Question 19

4 out of 4 points


The Herfindahl-Hirschman index (also shortened to just the Herfindahl index) is a measure of ____.


·         Question 20

4 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.


·         Question 21

4 out of 4 points


Which of the following should not be counted in a cost-benefit analysis?


·         Question 22

4 out of 4 points


The ____ depicts the risk-return relationship in the market for all securities:


·         Question 23

4 out of 4 points


In cost-effectiveness analysis, constant cost studies:


·         Question 24

4 out of 4 points


Capital expenditures:


·         Question 25

4 out of 4 points


In order to help assure that all relevant factors will be considered, the capital-expenditure selection process should include the following steps except:




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