During a period when output and employment is falling, the government will try to:
A. Increase tax rates
B. Increase interest rates
C. Reduce government spending
D. Stimulate borrowing and spending
D. Stimulate borrowing and spending
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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. 
In the Nash equilibrium of this game:
A. both firms cheat on the agreement B. Bagel World cheats and Bagels 'R' Us abides C. Bagel World abides and Bagels 'R' Us cheats D. both firms abide by the agreement
A key assumption of most economic analysis is that people are altruistic, meaning that they act in their own self-interest.
Answer the following statement true (T) or false (F)
In economics, the term physical capital
A) refers to funds used by businesses to acquire goods and services. B) refers to all manufactured resources used for production. C) refers to the process of raising funds through the stock market. D) refers to the stock of merchandise already produced.
The total amount of taxes paid divided by before-tax income is the
A. median taxpayer rate. B. average tax rate. C. rate of hysteresis. D. marginal tax rate.