Demand-pull inflation is caused by:
a. an increase in aggregate demand.
b. a decrease in aggregate demand.
c. an increase in aggregate supply.
d. a decrease in aggregate supply.
a
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The market for bagels contains two firms: BagelWorld (BW) and Bagels'R'Us (BRU). The owners of the two firms decide to fix the price of bagels. The table below shows how each firm's profit (in dollars) depends on whether they abide by the agreement or cheat on the agreement. 
Is this game a prisoner's dilemma?
A. Yes, because if both firms played their dominated strategy, they each would earn a higher payoff than when they both play their dominant strategy. B. No, because neither firm has a dominant strategy. C. Yes, because if both firms played their dominant strategy, they each would earn a higher payoff than when they both play their dominated strategy. D. No, because cheating yields the highest payoff for both firms.
Demand is said to be inelastic when
A) a given percentage change in price will result in a less than proportionate percentage change in the quantity demanded. B) demand exhibits zero responsiveness to price changes. C) small price increases will lead to zero quantity demanded. D) a given percentage change in price will result in a greater than proportionate percentage change in the quantity demanded.
What is the price of a TV in an open economy with a quota? 
A. $150 B. $100 C. $125 D. $75
Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.
Figure 9.2Refer to Figure 9.2. If MR = $5, then a profit-maximizing firm will produce ________ units and earn ________.
A. 0; negative profits B. 12; positive profits C. 10; negative profits D. 5; zero profits