A "rational terrorist" will react to the increased security at U.S. airports by
A. attacking U.S. airports.
B. attacking other highly-defended targets.
C. ending all attacks.
D. attacking other high value U.S. interests outside the U.S.
Answer: D
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As we move to higher indifference curves, compensated demand (or MWTP) curves shift to the right.
Answer the following statement true (T) or false (F)
The production possibilities frontier is used by economists to depict
A) the strictly financial costs of production. B) the opportunity costs of production. C) the strictly financial benefits of production. D) the opportunity benefits of production.
As an exchange rate regime, target zones would be classified as
A) splitting the difference between fixed and flexible. B) a flexible exchange rate policy. C) a fixed exchange rate policy. D) a currency basket.
All of the following actions are potential rule -of-reason violations except which one?
A) an agreement with a competitor firm to adjust output levels B) an exclusive dealings contract with a customer C) an agreement with a customer about the resale price the customer will charge for the product D) a tying sale with a customer