Lane and Riley are the only two residents in a neighborhood, and they share the same driveway. They would like to have the driveway paved. The value of the paved driveway is $1,500 to Lane and $900 to Riley. Regardless of who pays for the paving both people will benefit from it. What is the most a contractor can charge to pave the driveway and still be assured of being hired by at least one of them?
A. $1,500
B. $600
C. $900
D. $2,400
Answer: A
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Refer to the figure below. 
If both firms offer reduced rates, each earns ________, and if both firms keep their rates high, each earns ________.
A. 500; 300 B. 300; 500 C. 50; 300 D. 300; 50
A tax on a good
a. raises the price that buyers effectively pay and raises the price that sellers effectively receive. b. raises the price that buyers effectively pay and lowers the price that sellers effectively receive. c. lowers the price that buyers effectively pay and raises the price that sellers effectively receive. d. lowers the price that buyers effectively pay and lowers the price that sellers effectively receive.
A circumcision is a surgical procedure to remove:
A. Cowper's gland. B. foreskin of the penis. C. scrotum. D. undescended testicles.
Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are
A. sticky prices. B. administered prices. C. market prices. D. regulatory prices.