An element of trust is built into money because
A. people must trust that the government can always print more of it if necessary.
B. people must trust that it will still have value when they want to spend it in the future.
C. the government maintains a monopoly over the money supply, and people tend to trust monopolies.
D. people must trust the Federal Reserve to prevent banks from failing.
Answer: B
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According to economic liberalism, the regulating force of the economy is
a. self-interest. b. laissez-faire. c. competition. d. the government.
Who helps calculate GDP in the United States?
A) the Bureau of Economic Analysis B) the Census Bureau C) the Bureau of Labor Statistics D) all of the above E) none of the above
P-TV and QRS-TV are trying to decide whether to air a sitcom or a reality show in a given time slot. Viewers like both sitcoms and reality shows, but sitcoms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below.
Suppose QRS-TV enters into an agreement with P-TV that gives QRS-TV the exclusive right to air a reality show during this time slot. QRS-TV would be willing to pay P-TV ________ in order to persuade P-TV to enter into this agreement.
A. more than $10 million B. nothing C. no more than $5 million D. no more than $10 million
The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. 
This game is an example of a:
A. credible promise. B. cartel. C. game with multiple equilibria. D. prisoner's dilemma.