Quotas, such as limiting the amount of residential water use during a drought, restricts an individual's preference set and
A) reduces utility because an individual cannot consume as much as they would without the quota.
B) increases utility because quotas restrict output and raise profits for the water company.
C) reduces utility because an individual is forced to substitute to other goods.
D) does not affect overall utility.
A
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Refer to the figure below. In this game, the dominated strategy for Player A: 
A. will depend on Player B's move. B. is to play down. C. is to play up. D. is to cooperate with Player B.
Refer to Figure 3-4. If the price is $15
A) there would be a shortage of 400 units. B) there would be a surplus of 300 units. C) there would be a surplus of 400 units. D) there would be a shortage of 300 units.
Disintermediation resulted from
A) interest rate ceilings combined with inflation-driven increases in interest rates. B) elimination of Regulation Q (the regulation imposing interest rate ceilings on bank deposits). C) increases in federal income taxes. D) reserve requirements.
In the new Keynesian model, expected inflation is a function of ________
A) expected future output gaps and markup shocks B) current and past inflation C) unanticipated aggregate demand shocks D) expected growth of the money supply