Figure 17-2

question 5

Multiple Choice

Figure 17-2. Hector and Bart are roommates. On a particular day, their apartment needs to be cleaned. Each person has to decide whether to take part in cleaning. At the end of the day, either the apartment will be completely clean (if one or both roommates take part in cleaning) , or it will remain dirty (if neither roommate cleans) . With happiness measured on a scale of 1 (very unhappy) to 10 (very happy) , the possible outcomes are as follows:

-Refer to Figure 17-2.The dominant strategy for Hector is to

• A) clean, and the dominant strategy for Bart is to clean.
• B) clean, and the dominant strategy for Bart is to refrain from cleaning.
• C) refrain from cleaning, and the dominant strategy for Bart is to clean.
• D) refrain from cleaning, and the dominant strategy for Bart is to refrain from cleaning.

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Definitions:

Free Trade

A policy wherein a government does not discriminate against imports or interfere with exports by applying tariffs (to imports) or subsidies (to exports).

Tariffs

Government levies on goods brought into the country.

Import Quotas

Import Quotas are government-imposed limits on the quantity or value of goods that can be imported into a country, typically used to protect domestic industries and control trade balances.

Acquired Comparative Advantage

An advantage a country develops over time in producing certain goods or services, often through investment in education, infrastructure, or technology.