Suppose a new oxygen-enrichment process will cut in half the energy required to smelt copper. The firm selling licenses for this patented process will experience a greater demand for its product when
a. the price of copper falls and smelters become more desperate to economize.
b. energy prices are expected to fall.
c. energy prices are expected to rise.
d. the price of steel, a substitute for copper, declines.
C
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Player 1 and Player 2 are playing a game in which Player 1 has the first move at A in the decision tree shown below. Once Player 1 has chosen either Up or Down, Player 2, who can see what Player 1 has chosen, must choose Up or Down at B or C. Both players know the payoffs at the end of each branch. 
What is the equilibrium outcome of this game?
A. Player 1 chooses Up and Player 2 chooses Down. B. Player 1 chooses Down and Player 2 chooses Up. C. Player 1 and Player 2 both choose Down. D. Player 1 and Player 2 both choose Up.
As the money supply increases, interest rates _______ and aggregate demand shifts to the _______.
A. Increase; left B. Increase; right C. Decrease; left D. Decrease; right
In a situation where there is no incentive to cut pollution because it will make domestic firms less competitive, it will improve world welfare if:
a. nations impose tariffs on polluters. b. there is an international agreement so that every nation regulates global pollutants and no firms have competitive advantages because of lax pollution laws. c. there is a ban on production until we can scientifically solve our pollution problems. d. we allow the market to work in this case.
Professor Jeremy Siegel, of the University of Pennsylvania, did research showing that:
A. bonds really are less risky to hold over the long term. B. owning stocks over the long run produces returns below the risk-free return. C. the return on the S&P 500 for a 25-year period often produces returns below zero. D. if an investor owns stocks for a very short time the risk is greater than if the stocks are held for a long time.