Suppose Firm A and Firm B are considering whether to invest in a new production technology. For each firm, the payoff to investing (given in thousands of dollars per day) depends upon whether the other firm invests, as shown in the payoff matrix below. 
Is this game a prisoner's dilemma?
A. No.
B. Yes.
C. It cannot be determined.
D. Only when both Firm A and Firm B invest.
Answer: A
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As real disposable income increases, we expect the average propensity to consume (APC)
A) to always be below MPC. B) to increase. C) to remain unchanged. D) to decrease.
Which explains why supply curves slope upward to the right?
A) Sunk costs B) Decreasing average costs C) Increasing marginal costs D) Multiple per-unit costs
According to the quantity theory of money, if both the growth rate of the money supply and the velocity of money are fixed, then a higher inflation rate means
What will be an ideal response?
An export subsidy imposed in a large exporting country will cause the country's international terms of trade to improve.
Answer the following statement true (T) or false (F)