Resources employed to persuade government to redistribute income and wealth to special interests are unproductive.
a. True
b. False
QUESTION 2Game theory is used in a number of areas in economics. What is the primary reason that it is used in analyzing oligopoly type market structures?
a. The firms are producing a similar product
b. The firms are producing differentiated products
c. The demand curve facing the oligopolistic firms is perfectly inelastic
d. The mutual interdependence of firms in industries with a small number of firms
e. The demand curve the oligopolistic firm faces is downward sloping
QUESTION 3Rents represent earnings that
a. exceed marginal cost
b. are less than marginal revenue product
c. are less than what producers would require to supply products
d. exceed opportunity revenue
e. exceed opportunity cost
QUESTION 4Game theory focuses on
a. strategic behavior among interdependent firms
b. professional athletic events
c. competition between the players in board games
d. competition between those in the political arena and those in the market place
e. the interaction between firms in a competitive industry and those in a non-competitive industry
QUESTION 5U.S. farm subsidies are a sticking point in negotiating freer international trade agreements.
a. True
b. False
QUESTION 6Game theory is most useful in understanding the decision making behavior of firms in which type of industry?
a. perfect competition
b. monopoly
c. monopolistic competition
d. natural monopoly
e. oligopoly
QUESTION 7Direct transfer programs are generally less efficient and less politically acceptable than subsidy programs.
a. True
b. False
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