1. A Nash equilibrium occurs a. when a unilateral move by a participant does not make the participant better off. b. when a unilateral move by a participant makes the participant better off. c. when a unilateral move by a participant does not make the other participant better off. d. when a unilateral move by a participant makes the other participant worse off. 2. Several politicians have proposed a “guzzler” tax that would be added to the cost of few-miles-per-gallon vehicles. If enacted, this tax would most likely a. reduce the equilibrium price. b. increase the equilibrium output. c. increase U.S. dependency on foreign oil supplies. d. shift the supply curve (for automobiles) inward. e. do all of these.
3. A cartel is a. implicit collusion. b. explicit collusion. c. a facilitating practice. d. a merger of firms into a monopoly. e. legal in the United States.
4. In some African countries, the elephant population increased significantly when the government facilitated a. substitution of African elephants for Indian elephants. b. a shift from common ownership to private property rights. c. social regulation of elephant breeding. d. a shift from private ownership to public ownership. e. the creation of a natural monopoly. 5. Which of the following is not one of the classifications of current economic thinking? a. Keynesian economists b. Reaganomists c. Marxists d. free market economists e. All of these were presented as current schools of thought.