Which of the Following Is Not a Question That Economists

question 38

Multiple Choice

Which of the following is not a question that economists try to answer when measuring the distribution of income?

• A)How much inequality is there in our society?
• B)How many people live in poverty?
• C)How often do people receive raises?
• D)What problems arise in measuring the amount of inequality?

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Definitions:

Game Theory

The study of how people behave in strategic situations in which individuals must take into account not only their own possible actions but also the possible reactions of others. Originally developed to analyze the best ways to play games like poker and chess.

Strategic Behavior

Self-interested economic actions that take into account the expected reactions of others.

Dominant Strategy

A strategy that always results in the highest payoff for a player, regardless of the opponents' actions.

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.