A collusion occurs when:
a. firms act together to increase industry output.
b. firms act together to decrease industry price.
c. firms act together to earn normal profits
d. firms act together to increase social welfare.
b
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The table below shows how the payoffs to two political candidates depend on whether the candidates run a positive or negative campaign. The payoffs are given in terms of the percentage change in the number of votes received. 
Running a negative campaign is ________ for the ________ candidate.
A. a dominant strategy; Democratic B. neither a dominant nor dominated strategy; Republican C. a dominated strategy; Democratic D. a dominated strategy; Republican
A seller's willingness to sell is
a. measured by the seller's cost of production. b. related to her supply curve, just as a buyer's willingness to buy is related to his demand curve. c. less than the price received if producer surplus is a positive number. d. All of the above are correct.
Which of the following is the best example of an abstraction that would be used in an economic theory?
a. U.S. companies export thousands of various goods. b. Throughout the world, there are 42 companies producing cell phones. c. There are two companies producing tennis rackets. d. In Illinois, 62,201 people offer legal services.
The book cites a result where after of the implementation of the congestion tax in Stockholm, Sweden of $1.50-$3.00, traffic volume was reduced and travel time for cars and buses was cut in half. This is an example of:
A. responding to incentives. B. the role of pricing in allocating resources. C. caveat emptor. D. comparative advantage.