Macroeconomics: Principles and Policy (MindTap Course List)
13th Edition
ISBN: 9781305280601
Author: William J. Baumol, Alan S. Blinder
Publisher: Cengage Learning
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Chapter 18, Problem 1DQ
To determine
To ascertain:The reasons to be better off with both the conditions.
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You have a dozen shirts and your roommate has six pairs of shoes worth roughly the same amount of money. You decide to swap six shirts for three pairs of shoes. In financial terms, neither of you gains anything.
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Two hunters may choose, individually and simultaneously, to go deer hunting, as the deer can provide abundant and appetizing food, or to go hare hunting, also appetizing, but scarce. Deer hunting represents a challenge and requires mutual coordination. Hunting a deer without cooperation means that the deer will be safe; while hunting a deer in groups guarantees it will be caught. Hare hunting is an individual activity that does not require another hunter, and the one who decides to go hare hunting always makes it. The reward for hunting a hare is 1, while the reward for each of the hunters for catching a deer together is 3 for each one. The reward for not hunting a deer is 0.
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Chapter 18 Solutions
Macroeconomics: Principles and Policy (MindTap Course List)
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