Suppose that two players are playing the following game. Player 1 can choose either Top or Bottom, and Player 2 can choose either Left or Right. The payoffs are given in the following table

where the number on the left is the payoff to Player A, and the number on the right is the payoff to Player B.

A) (4 points) Does player 1 have a dominant strategy, and if so what is it?

B) (4 points) Does player 2 have a dominant strategy and if so what is it?

C) (4 points each) For each of the following strategy combinations, write TRUE if it is a Nash Equilibrium, and FALSE if it is not:

i) Top/Left

ii) Top/Right

iii) Bottom/Left

iv) Bottom Right

D) (4 points) What is Player 1’s maximin strategy?

E) (4 points) What is player 2’s maximin strategy?

F) (4 points) If the game were played with Player 1 moving first and player 2 moving second, using the backward induction method discussed in the class notes, what strategy will each player choose?

Can you think of both equity and efficiency arguments supporting the special treatment of capital gains?

Why did industries become so much larger after the US Civil War, and how did this lead to abusive practices? What role did politics play in creating US laws fostering competition?

We have discussed 5 different types of economic value in class. Please give a personal example of each type of value based on your life experiences over winter holidays. Which of the 5 values can be observed in markets? How can we reflect our values for the things you listed that are not observed in markets?

1. Suppose the data for a hypothetical economy is given above. This economy produces only 3 things, pizzas, haircuts and tanks. The base year is 2019.

a. Calculate GDP deflator in 2020. Based on GDP deflator, what is the inflation rate from 2019 to 2020?

b. Suppose a representative consumer basket consists of 10 pizzas and 20 haircuts. Using this consumer basket, calculate CPI in 2020 (again, assuming 2019 is the base year). Based on CPI, what is inflation rate

c. Why do you think there is such a dramatic difference in the inflation rates from parts a and b?

Licensure of physicians means that to some extent, the supply of physicians can be viewed as a vertical line. Explain what this means for the price of physician services. Which factors might change the shape and position of the supply curve for physicians over time? What is the difference between a doctor, a physician’s assistant, a nurse practitioner and an RN? How has the creation of these new healthcare providers affected the demand and supply for health care?

4. Explain what is MEDICARE.

5. Identify the 15 health dimensions of the Health–Related Quality of Life Index. No need to explain.

6. Differentiate Mortality Rate vs. Morbidity Rate.

-Discuss the globalization of the US economy.

-Explain the role of price as a free market regulator.

-theoretically the market is an automatic, competitive, self regulating mechanism which provides for the maximum consumer welfare and which best regulates the use of the factors of production. Explain

-Enumerate the ways in which a nation can overcome an unfavorable balance of trade.

-Support or refute each of the various arguments commonly use in support of tariffs.

-Does widespread unemployment change the economic logic of protectionism?

-Review the economic effects of major trade imbalances such as those caused by petroleum imports.

- Discuss the main provisions of the omnibus Trade and competitiveness Act of 1988.

-The Tokyo Round of GATT emphasized the reduction of non tariff barriers. How does the Uruguay Round differ?

-Discuss the evolution of world trade that led to the formation of the WTO.

An oligopoly firm faces a kinked demand curve with the two segments given by: P = 230 – 0.5Q and    P = 280 – 1.5Q. The firm currently has a constant marginal cost, MC of $150.

1. State the assumptions of the kinked demand model in terms of price-matching and elasticity.

2. Determine the quantity and price at the kink.

3. Calculate how much higher the marginal cost must be before the firms would change the profit-maximizing output and therefore the price.

List and describe two long term impacts for Congo due to Belgian occupation, as stated or implied by the documentary. These long term impacts can stretch far past WW I in terms of textbook reading, so stick simply with what you see in the documentary and what reason could logically deduce.

What differentiates a team from a group? Why is this distinction an important one?

300 words.

44. Diminishing marginal product of labor implies that the

Group of answer choices

total cost of output is increasing at a decreasing rate.

marginal cost of an extra unit of output is decreasing.

total product of labor is decreasing at an increasing rate.

marginal cost of an extra unit of output is increasing.

total cost is increasing at a decreasing rate.

34. Suppose that to start up his own firm, Bob quits a $50,000/year job, withdraws $40,000 from his bank account (yielding 5% interest per year) and rents space from a real estate firm for $18,000 per year. In addition, if Bob annually spends $200,000 on employees, $2,000 on kringle, $150,000 on manufacturing equipment, $125,000 on raw materials, $10,000 on office supplies and $25,000 on employee benefits, then Bob’s annual implicit costs are _____ and his annual explicit costs are _____.

Group of answer choices

$50,000, $570,000.

$52,000, $512,000.

$52,000, $530,000.

$52,000, $570,000.

$90,000, $512,000.

24. If a firm’s explicit costs are $5,000, its implicit costs are $2,500, and its total revenue is $8,500, then its _____ profit is _____.

Group of answer choices

accounting, $1,000.

economic, $1,000.

economic, $3,500.

accounting, $6,000.

economic, $6,000.

4. Suppose that the demand for cheese hats is relatively inelastic and the supply of cheese hats is relatively elastic. If a $5 excise tax is imposed on the production of cheese hats, then the price consumers pay will

Group of answer choices

increase by more than $5.

increase by less than $2.50.

increase by more than $2.50 but less than $5.

increase by exactly $5.

not change because producers will pay the entire tax.

63. A bundle (X*,Y*) maximizes Ned’s utility if (X*,Y*) exhausts his income and satisfies the condition

Group of answer choices

MU_X = MU_Y.

MU_X/P_X = MU_Y/P_Y

MU_X/P_X = 0 = MU_Y/P_Y.

MU_X⋅P_X = MU_Y⋅P_Y.

MU_X/P_X < MU_Y/P_Y.