The market for bagels contains two firms: BagelWorld (BW) and Bagels'R'Us (BRU). The owners of the two firms decide to fix the price of bagels. The table below shows how each firm's profit (in dollars) depends on whether they abide by the agreement or cheat on the agreement. 
Suppose the game above is repeated every day, and both firms adopt the following strategy: cooperate on the first day, then if the other firm cheats, cheat the next day, and if the other firm abides, abide the next day. This type of strategy is known as:
A. a prisoner's dilemma.
B. the golden rule.
C. the cartel solution.
D. a tit-for-tat strategy.
Answer: D
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Based on the figure above, curve A is the firm's
A) marginal cost curve. B) total cost curve. C) average total cost curve. D) total variable cost curve. E) total fixed cost curve.
Which of these is an advantage of money as a store of value? a. It can generate high interest income
b. It can facilitate hassle-free international exchange. c. It can be easily liquidated. d. It can signal a nation's economic health. e. It can increase potential output.
If the actual interest rate is below the equilibrium interest rate, the
a. Fed must intervene in financial markets to restore the interest rate to its equilibrium value b. price of bonds will increase c. price of bonds will decrease d. money supply will increase until the interest rate rises e. money supply will decrease until the interest rate rises
If the price of tables sold by All-Oak Table Co. decreases from $500 to $400, then the:
A. supply of labor to All-Oak Table Co. increases. B. demand for labor by All-Oak Table Co. decreases. C. demand for labor by All-Oak Table Co. increases. D. supply of labor to All-Oak Table Co. decreases.