Which of the following is true of a payoff matrix? A) It is ...

[MGLQZ]

Which of the following is true of a payoff matrix?
 
  A) It is the representation of only the best response of each player.
  B) It takes into account all relevant costs and benefits associated with each action of the players.
  C) It shows the payment made to each factor of production for the production of a good.
  D) It does not represent all the costs and benefits associated with the choices of the players.

Question 2

Define and give an example of how a spell of frictional unemployment can begin.
 
  What will be an ideal response?

[Smiles0805]

Answer to Question 1

B

Answer to Question 2

Frictional unemployment is the unemployment resulting from normal turnover in the labor market. For instance, there are always people entering or reentering the labor force (entrants and reentrants) and while these people look for work, they are frictionally unemployed. Similarly, there are always some people who quit their jobs to look for something better, and these people are frictionally unemployed. And, there is always a normal ebb and flow among firms as some gain sales while others lose them. The firms that lose business might release workers and these people also are frictionally unemployed.

[MGLQZ]

Thanks for the timely response, appreciate it

[matt95]

Excellent