The term prisoners' dilemma
a. refers only to situations where prisoners' must confess on one another.
b. is in agreement with Adam Smith's invisible hand idea.
c. represents situations where people do not act in their own self interest.
d. can be applied to show why cartels are difficult to maintain.
d. can be applied to show why cartels are difficult to maintain.
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
The figure above shows the market for milk. The ________ price that producers must be offered to get them to produce 100 gallons of milk per day is ________
A) maximum; $2.50 B) minimum; $3.00 C) maximum; $4.00 D) minimum; $2.50
A perfectly competitive firm has to charge the same price as every other firm in the market. Therefore, the firm
A) faces a perfectly elastic supply curve. B) is not able to make a profit in the short run. C) faces a perfectly inelastic demand curve. D) is a price taker.
On the graph above, the wage level at point ________ might represent an efficiency wage
A) 2 B) 4 C) 6 D) 5