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ECO 550 Final Exam 2

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ECO 550 Final Exam 2

  1. Credibility in threats and commitments in sequential games is based on
  2. When there is an Equilibrium (or a Nash Equilibrium), we expect that:
  3. In making promises that are not guaranteed by third parties and in imposing penalties that are not enforced by third parties, all of the following are credibility-enhancing mechanisms except
  4. The starting point of many methods for predicting equilibrium strategy in sequential games is
  5. When there is no Equilibrium (or no Nash Equilibrium), we expect that:
  6. The decision by the Municipal Transit Authority to either refurbish existing buses, buy new large buses, or to supplement the existing fleet with mini-buses is an example of:
  7. Which of the following items is (are) not considered as part of the net investment calculation?
  8. Cost-benefit analysis is the public sector counterpart to ____ used in private, profit-oriented firms.
  9. If the acceptance of Project A makes it impossible to accept Project B, these projects are:
  10. Affect long-run future profitability
  11. Which of the following is not among the functions of contract?
  12. When someone contracts to do a task but fails to put full effort into the performance of an agreement, yet the lack of effort is not independently verifiable, this lack of effort constitutes a
  13. Mac trucks and their dealers would likely have an organizational form of
  14. When manufacturers and distributors establish credible commitments to one another, they often employ
  15. When borrowers who do not intend to repay are able to hide their bad credit histories, a lender's well-intentioned borrowers should
  16. The ____ is equal to the some of the squares of the market shares of all the firms in an industry.
  17. The Herfindahl-Hirschman index (also shortened to just the Herfindahl index) is a measure of ____.
  18. The antitrust laws regulate all of the following business decisions except ____.
  19. ____ yields the same results as the theory of perfect competition, but requires substantially fewer assumptions than the perfectly competitive model.
  20. The sentiment for increased deregulation in the late 1970's and early 1980's has been felt most significantly in the price regulation of
  21. Firms that have a cover charge for their customers and charge for each item they purchase as well are exhibiting
  22. Third-degree price discrimination exists whenever:
  23. Electricity pricing that varies in its billing expense throughout the day is called
  24. ____ is the price at which an intermediate good or service is transferred from the selling to the buying division within the same firm.
  25. Vacation tours to Europe invariably package visits to disparate regions:  cities, mountains, and the seaside.  Bundling, a type of second degree price discrimination, is most profitable when:

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