Since Countries Differ in the Amount of Economic Activity That

question 81

Multiple Choice

Since countries differ in the amount of economic activity that is transacted in organized markets,

• A)some countries are more productive than others.
• B)persons live better in some countries than others.
• C)international comparisons of per capita GDP are often misleading.
• D)comparisons between countries are totally impossible.

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Definitions:

Nash Equilibrium

The situation that occurs in some simultaneous games wherein every player is playing his or her dominant strategy at the same time and thus no player has any reason to change behavior.

First-Mover Advantage

In game theory, the benefit obtained by the party that moves first in a sequential game. A situation that occurs in a sequential game if the player who gets to move first has an advantage in terms of final outcomes over the player(s) who move subsequently.

Simultaneous Game

A strategic interaction (game) between two or more parties (players) in which every player moves (makes a decision) at the same time.

Collusive Oligopoly

A market condition where a small number of firms illegally agree to set prices or output levels to maximize collective profits.