Econ 2300 Exam 2

The most important laws that regulate monopolies are collectively referred to as:

In a free-market economy, a product which entails a positive externality will be:

The efficiency implications of a monopoly can be summarized as follows:

Which one of the following is a characteristic of monopolies?

One of the reasons for which universities offer students discounted flu vaccines is that:

If the production of a good involves negative externalities, then the government can improve market efficiency by:

If some activity creates external benefits as well as private benefits, then economic theory suggests that the activity should be:

Comparing the market outcome of a monopoly with that of a perfectly competitive market, we can clearly say that

Which of the following is an example of negative externalities?

Higher education brings benefits not only to the individual who enrolls in a university, but also to the society where this individual lives. This is an example of:

Among the following examples, the one that best illustrates a public good is:

Adverse selection can occur when

In the health insurance market, moral hazard occurs when

Which of the following goods is excludable and nonrival?

Your grade point average acts as ________ to potential employers.

A common resource is

When an auto insurance company is screening, it is

A common problem associated with public goods is:

If a salesperson is paid by the volume of sales he or she makes, then the

If Sally drives less carefully after buying auto insurance, she illustrates

The method used to solve dynamic games is called

The madman strategy

A non-credible threat

A dominant strategy is a strategy that

A Nash equilibrium is the outcome where

Two firms compete by deciding simultaneously whether to chose a HIGH price or a LOW price on the market. If both firms choose a high price, they each earn $200. If both firms choose a low price, they each earn $150. If one firm chooses a low price and the other chooses a high price, the one with a high price earns nothing and the one with the low price earns $300. Which one of the following is true?

The reason we use Game Theory to study oligopoly problems is that