Absent any violations of the conditions underlying the first welfare theorem, the competitive market equilibrium is efficient if and only if tastes are quasilinear.
Answer the following statement true (T) or false (F)
False
Rationale: The first welfare theorem holds regardless of whether tastes are quasilinear.
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Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch. 
In the equilibrium this game, Tracy chooses the ________ branch, and then Amy chooses the ________ branch.
A. bottom; top B. top; top C. bottom; bottom D. top; bottom
Suppose Bob works for Mary as a proofreader. Mary and Bob fall deeply in love, marry, and have eight children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP?
A) GDP will not change. B) GDP will increase. C) GDP will decrease. D) GDP may increase or may decrease depending on inflation.
Heath's company is currently producing 30 units of output. The price of the good is $8 per unit. Total fixed costs are $50 and the average variable cost is $5 at 30 units. This company:
a. is experiencing a loss of $40. b. should shut down its operation. c. is experiencing an economic profit of $40. d. should expand its operation.
Which of the following federal agencies is engaged in social regulation?
A) Equal Employment Opportunity Commission B) Office of the Comptroller of the Currency C) the Securities and Exchange Commission D) Federal Deposit Insurance Corporation