A formula that describes the optimal behaviour of one player in terms of the behaviour of the other players is called...

a.The Cho-Kreps intuitive criterion.

b.A separating equilibrium.

c.A reaction function.

d.A pooling equilibrium.

In the absence of trade, the consumption possibilities frontier...

a.Is a smaller set than the production possibilities frontier.

b.Is the same size as the production possibilities frontier.

c.Is not comparable to the production possibilities frontier because there is no trade.

d.Is a larger set than the production possibilities frontier.

Which of the following is not a property of indifference curves?

a.They have a negative slope.

b.They cannot intersect.

c.Higher levels of happiness are curves that are further from the origin.

d.They are concave.

The impact of an import quota is that...

a.The domestic quantity demanded decreases.

b.The government does not receive any tariff revenue.

c.The resulting domestic price is greater than the world price.

d.All of the others are correct.