Question

**TRUE / FALSE + (explanation)**

Please answer whether a statement is true or false and give a 1-2 sentence explanation of why this is the case.

**1.1 Firms do not reap the benefits of their positive
externalitiesso they always produce too little.**

**1.2 In a static game, Nash Equilibrium are always
subgame perfect.**

**1.3 Risk averse individuals never prefer a lottery over
a sure bet.**

**1.4 Product differentiation makes consumers and
producers better off.**

**- Thank you!**

Answer #1

**Answer :-**

**1):-** **True**

Because if there should be an occurrence of positive externality, the product will in general have the positive overflows (External advantage).

For which the makers are not paid , in this manner they produce not exactly socially Optimal level.

**2) :- True**

Since game isn't dynamic , its not played for in excess of a period , along these lines NE is itself SPNE.

**3):- True**

Risk averse Individuals prefere a definite sum over a questionable lottery.

**4):- True**

Product Differentiation gives the makers an imposing business model power, power to set the costs

Consequently they are in an ideal situation.

While consumers gain admittance to Increased assortment of goods, consequently they also gain from Product differentiation.

TRUE OR FALSE + EXPLANATIONS
1,Firms do not reap the benefits of their positive externalities
so they always produce too little
2,In a static game, Nash Equilibrium are always subgame
perfect
3,Risk averse individuals never prefer a lottery over a sure
bet
4,Product differentiation makes consumers and producers better
off.

TRUR/FALSE EXPLANATION
1.11 When an individual has utility function U(W) =W, the
expected value and expected utility of a risky event are the
same.
1.12 Risk averse individuals never prefer a lottery over a sure
bet.
1.13 In a lemons market with adverse selection, the equilibrium
always involves only the lemons being bought and sold.
1.14 If a firm achieves efficiency in production when hiring
they also necessarily achieve efficiency in risk bearing.
1.15 Only the total compensation paid to...

QUESTION 1 Answer each of the following questions by TRUE or
FALSE.
(1.1) The correlation coefficient between two variables is
always between 0 and 1.
(1.2) The t−statistic is an indicator of the level of
significance of correlation.
(1.3) The overall significance of a regression is determined by
the R2 .
(1.4) Moving average is a useful tool that helps dealing with
seasonality in time-series.
(1.5) The seasonal index is an indicator of forecast accuracy

Problem 1:
For the following, please answer "True" or "False" and
explain why.
In simultaneous move game where one player has a dominant
strategy, then he is sure that he will get the best possible payoff
in a Nash equilibrium.
In a simultaneous game where both players prefer doing the
opposite of what the opponent does, a Nash equilibrium does not
exist.
If neither firm has a dominant strategy, a Nash equilibrium
cannot exist.

True or False
Answer each of the following statements True/False. Give a full
explanation of your answer. Include clearly labelled graphs where
appropriate. (9 points)
a. Consider the following consumption bundles of two goods:
(x1,x2) = (27,10), (x1, x2) = (40, 18), and (x1, x2) = (200, 7).
Monotonicity implies that (40, 18) is preferred to (27, 10), but
does not imply that (200, 7) is preferred to (27, 10).
b. If the marginal rate of substitution between two goods...

Please write whether the statement is true or false, and if
false please explain why it is.
“The more charges you put together in a region of space, the
stronger the electric field gets.”
“Electric field vectors never cross.”
“Electric field lines always have to be straight.”
“Electric field vectors always have to be straight.”
“The motion of a charged particle in a uniform electric field is
always a straight line.”
“A charged particle in an electric field always moves...

True or False. Explain your answer:
1.1) An annuity with an infinite life is called a
perpetuity.
1.2) The accounting equation states that assets plus liabilities
equal equity
1.3) A bond may only be issued by state governments.
1.4 ) The dividend is the regular interest payment of the
bond.
1.5) The primary is the market of first sale in which companies
first sell their authorized shares to the public.

State whether the statement is true or false. Also,please give a
simple and clear explanation.
A. let a,b ∈Sn, then |ab| is the least common multiple of |a|
and |b|.
B.Let G and H be groups and suppose N is a normal subgroup of G.
Then there exists a homomorphism from f: G → H,where N is the
kernel of f.

Part I. True/False/Uncertain/Explanation.
Make sure you provide an explanation why you think the statement
is True or False or Uncertain. You get ZERO mark if you do not
provide any explanation.
When government levies a tax on seller, the tax burden on
seller is always higher than the buyer.
A solution to adverse selection in insurance market is
mandating everyone to buy liability insurance.
As federal and provincial governments have
exclusive taxation and spending power in Canada, there is no...

Answer whether the statement is True or False or Uncertain.
EXPLAIN in detail.
According to the wealth substitution effect, private saving
increases due to social security taxes.
Government’s health care program can solve both moral hazard and
adverse selection problems.
The only reason why countries have social security is to improve
the economic status of the aged.
As education is a private good, the government should not
provide it.
Individuals always prefer cash-transfers to in-kind
transfers.

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