At the core of the American trade problem is that
A. Americans spend too much on consumption.
B. the dollar is too low.
C. the Japanese are excluding American products by means of high protective tariffs.
D. American manufacturers are too quality conscious and should instead concentrate on reducing costs.
A. Americans spend too much on consumption.
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Grace just got her first cell phone, an iPhone, for graduation. She tosses her iTouch in a drawer and never touches it again, even though she could easily sell it for $75 on Craigslist. Grace's choice is ___________ because ________________.
A. rational; she weighs the $200 she paid for the iTouch and the $75 she could sell it for now B. irrational; she weighs the $200 she paid for the iTouch and the $75 she could sell it for now C. rational; she would not pay $75 to buy the iTouch today D. irrational; she would not pay $75 to buy the iTouch today
Consider the accompanying payoff matrix. 
Suppose both players make their choices simultaneously and independently. What is the Nash equilibrium of this game?
A. Player A chooses Up and player B chooses Right. B. Player A chooses Down and player B chooses Right C. Player A chooses Up and player B chooses Left. D. Player A chooses Down and player B chooses Left.
If the MPC of an economy is 0.90 and the economy has a horizontal aggregate supply curve, then an increase in investment spending of $50 million will increase total income by
A. $50 million. B. more than $50 million but less than $500 million. C. $500 million. D. more than $500 million.
One way to explain the convexity of isoquants is to say that
A) as labor increases and capital decreases, MPL rises while MPK falls. B) as labor increases and capital decreases, MPL falls while MPK rises. C) as labor increases and capital decreases, MPL and MPK both fall. D) as labor increases and capital decreases, MPL and MPK both rise.