If a government policy increases benefits to the unemployed without having a detrimental effect on any other constituent, the policy is
A) a Pareto improvement.
B) redistributive.
C) regressive.
D) a positive externality effect.
Question 2
In a finitely repeated prisoners' dilemma game
A) firms will only cooperate if they each adopt a tit-for-tat strategy.
B) firms cooperate and achieve the collusive Nash equilibrium for all rounds.
C) firms cooperate for most of the rounds, but switch to the non-cooperative outcome in the final couple of rounds.
D) firms do not cooperate and the static game Nash equilibrium is the outcome for each round.
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