When a single person (or small group) has the ability to influence market prices, there is
a. competition.
b. market power.
c. an externality.
d. a lack of property rights.
b
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Suppose Jordan and Lee are trying to decide what to do on a Friday. Jordan would prefer to see a comedy while Lee would prefer to see a documentary. One documentary and one comedy are showing at the local cinema. The payoffs they receive from seeing the films either together or separately are shown in the payoff matrix below. Both Jordan and Lee know the information contained in the payoff matrix. They purchase their tickets simultaneously, ignorant of the other's choice. 
Suppose a timing element is added to the game, and that Jordan buys a ticket first. Then, after seeing Jordan's choice, Lee buys a ticket. What will be the equilibrium outcome?
A. Both Jordan and Lee will buy a ticket to the documentary. B. Both Jordan and Lee will buy a ticket to the comedy. C. Jordan will buy a ticket to the documentary and Lee will buy a ticket to the comedy. D. Jordan will buy a ticket to the comedy and Lee will buy a ticket to the documentary.
If Nations Quirk and Turk only produce aluminum or oil, the table below shows the maximum output of each nation. Output (units)NationsAluminumOilQuirk2040Turk3090Which one of the following terms of trade is most likely to produce mutually beneficial exchange between the two nations?
A. 1 unit of oil for 0.4 unit of aluminum B. 0.5 unit of oil for 2 units of aluminum C. 0.5 unit of oil for 1 unit of aluminum D. 1 unit of oil for 4 units of aluminum
Unlike banks, ________ have been allowed to branch statewide since 1980
A) federally-chartered S&Ls B) state-chartered S&Ls C) financially troubled S&Ls D) technically insolvent S&Ls
When a driver enters a crowded highway he increases the travel times of all other drivers on the highway. This is an example of a negative externality
a. True b. False Indicate whether the statement is true or false