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. 
In the equilibrium of this game:
A. both stations will air sitcoms.
B. QRS-TV will air a reality show and P-TV will air a sitcom.
C. both stations will air reality shows.
D. QRS-TV will air a sitcom and P-TV will air a reality show.
Answer: C
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The supply curve for milk
a. shifts when the price of milk changes because the price of milk is measured on the vertical axis of the graph. b. does not shift when the price of milk changes because the price of milk is measured on the vertical axis of the graph. c. does not shift when the price of milk changes because the price of milk is measured on the horizontal axis of the graph. d. shifts when the price of milk changes because the quantity supplied of milk is measured on the horizontal axis of the graph.
Economists predicted that the price of a depletable natural resource would rise by about 15 percent. Actually the price fell 10 percent. What most likely happened?
a. A government subsidy was removed. b. Extraction costs increased. c. Price controls were suspended. d. An unexpected discovery of reserves was made.
In the 1950s the top marginal federal personal income tax rate was
A. 91%. B. 70%. C. 50%. D. 31%.
The midpoint formula is used to measure the elasticity of demand between two points on a demand curve
A) when demand is elastic. B) in special cases when the percentage change in the quantity demanded is equal to the percentage change in price. C) to ensure that the elasticity has a negative value. D) to ensure that we have only one value of the price elasticity of demand between two points on a demand curve.