One of the key economic questions is, "Who consumes the products?"
Answer the following statement true (T) or false (F)
True
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Lee and Cody are playing a game in which Lee has the first move at A in the decision tree shown below. Once Lee has chosen either aggression or cooperation, Cody, who can see what Lee has chosen, must choose either aggression or cooperation at B or C. Both players know the payoffs at the end of each branch. 
If Lee chooses aggression, Cody will respond with ________, and if Lee chooses cooperation, Cody will respond with ________.
A. cooperation; aggression B. aggression; cooperation C. cooperation; cooperation D. aggression; aggression
Which of the following industries would be considered to have a capital intensive production process?
A. Creating a painting. B. Farming in a rich country C. Creating a hand-crafted wine. D. Serving food at a restaurant.
The method of forecasting with leading indicators can be criticized for
A) occasionally forecasting a recession when none ensues. B) forecasting the direction of the economy but not the size of the change in economic activity. C) frequent revisions of data after original publication. D) All of the above
Which of the following best describes the law of diminishing returns?
a. The principle that beyond some point the marginal product decreases as additional units of a variable factor (ex: labor) are added to a fixed factor (ex: a restaurant kitchen). b. The concept that as a person consumes more and more of a good, such as pizza slices, that the marginal utility from each additional slice will decline. c. The empirical fact that the profitability of firms declines in the long run due to increasing competition. d. None of the above.