If the market price of coffee is $3.00 per pound but the government will not allow coffee growers to charge more than $2.00 per pound of coffee, which of the following will happen?
A. The market will be in equilibrium at a price of $2.00.
B. There will be a shortage of coffee.
C. Demand must eventually decrease so that the market will come into equilibrium at a price of $2.50.
D. Supply must eventually increase so that the market will come into equilibrium at a price of $2.50.
Answer: B
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The rate of inflation in the United States since 1960 has:
A. declined steadily and predictably from 14% to 1.3%. B. remained below 1.3% as a result of effective Federal Reserve monetary policy. C. increased steadily from 1.3% to 14% and then decreased steadily back to 1.3%. D. fluctuated between 1.3 and 14%, often catching many people by surprise.
Refer to the figure below. 
When Row Resorts and Column Cruises both play their dominant strategy:
A. Column Cruises earns a higher profit than does Row Resorts. B. both firms do better than if they had both played their dominated strategy. C. both firms do worse than if they had both played their dominated strategy. D. Row Resorts earns a higher profit than does Column Cruises.
Why do pharmaceutical firms benefit most from patent protection?
A. Because research and development of drugs require large expenditures that need to be recouped while the patent is still valid. B. Because pharmaceutical drugs need to be controlled by the government. C. Because pharmaceutical companies pay large taxes to the government. D. Because only physicians can legally prescribe pharmaceutical drugs.
If the price of a slice of pizza falls, Tom can
A. buy more pizza with his paycheck. B. buy fewer soft drinks with his paycheck. C. no longer afford pizza on his paycheck. D. Either A or B is possible.