If the graph shown represents Taylor's budget constraint, which of the following consumption bundles could Taylor choose?
A. Taylor cannot choose to consume any of these bundles
B. Two pairs of earrings and six hairbands
C. One pair of earrings and six hairbands
D. Four pairs of earrings and eight hairbands
C. One pair of earrings and six hairbands
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Refer to the figure below. What is the Nash equilibrium of this game? 
A. A chooses Up, B chooses Right B. A chooses Up, B chooses Left C. A chooses Down, B chooses Left D. A chooses Down, B chooses Right
In a fixed exchange rate system, speculation regarding an expected revaluation or devaluation of a currency makes it more difficult to maintain the existing exchange rate
Indicate whether the statement is true or false
Suppose that the current price of a marketable permit to emit one ton of gunk is $60 . For firm A, the marginal cost of reducing one ton of gunk is $50 . For firm B, the marginal cost of reducing one ton of gunk is $70 . Under a marketable permit system, _____
a. both firms will buy a permit and emit one more ton of gunk b. firm A will buy a permit and emit one more ton of gunk, whereas firm B will reduce its emissions of gunk by one ton c. firm B will buy a permit and emit one more ton of gunk, whereas firm A will reduce its emissions of gunk by one ton d. both firms will reduce their emissions of gunk by one ton e. both firms will go out of business
People sometimes try to limit the options they have available. This
a. is consistent with rational economic behavior. b. can be explained by behavioral economic analysis c. explains why demand curves are sometimes vertical d. violates the assumption of transitive preferences e. occurs when income and substitution effects cancel out.