When Economists Make

question 213

Multiple Choice

When economists make

• A) positive statements,they are speaking not as policy advisers but as scientists.
• B) positive statements,they are speaking not as scientists but as forecasters.
• C) normative statements,they are speaking not as scientists but as policy advisers.
• D) normative statements,they are speaking not as policy advisers but as model-builders.

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Definitions:

Prisoners' Dilemma

A scenario in game theory that demonstrates why two rational individuals might not cooperate, even if it appears that it is in their best interest to do so.

Repeated Games

A strategic situation in which the same game is played several times by the same participants, allowing for the development of strategies based on past outcomes.

Contestable Markets Model

An economic concept suggesting that a market is competitive if entry and exit costs are low, even if it is dominated by a few firms.

Oligopoly

A market structure characterized by a small number of large firms dominating the industry, leading to limited competition and potential for collaboration in setting prices.