What is a reference point?
A) the value of a good on the black market
B) the point from which an individual makes a consumption decision
C) a subjective valuation of a good
D) the minimum price that an individual would sell a good that she currently owns
E) none of the above
B
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Suppose two companies, Macrosoft and Apricot, and considering whether to develop a new product, a touch-screen t-shirt. The payoffs to each of developing a touch-screen t-shirt depend upon the actions of the other, as shown in the payoff matrix below (the payoffs are given in millions of dollars). 
Suppose Apricot makes its decision first, and then Macrosoft makes its decision after seeing Apricot's choice. What will be the equilibrium outcome of this game?
A. Both Apricot and Macrosoft will develop a touch-screen t-shirt. B. Macrosoft will develop a touch-screen t-shirt, and Apricot will not. C. Apricot will develop a touch-screen t-shirt, and Macrosoft will not. D. Neither Apricot nor Macrosoft will develop a touch-screen t-shirt.
Economics is the study of
a. how to make money. b. choices in a world of scarcity. c. how to distribute unlimited production among limited wants. d. All of the above.
Bank deposit creation is limited by
A. reserve requirements. B. the interest rate. C. whether a bank is nationally or state chartered. D. whether a bank is in a large city or rural area.
If the marginal propensity to consume (MPC) is 0.96, the value of the spending multiplier is:
A. 25. B. 40. C. 96. D. 100.