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. 
In the Nash equilibrium of this game:
A. Bagel World abides and Bagels 'R' Us cheats
B. both firms abide by the agreement
C. Bagel World cheats and Bagels 'R' Us abides
D. both firms cheat on the agreement
Answer: D
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The takings clause states that the government can seize private property only if ________ is provided
A) comparably-valued property B) just compensation C) fair market value D) the seller's asking price
If the ratio of marginal revenue product to marginal factor cost for labor is greater than that for capital, then:
a. the producer can maximize profit by hiring more units of capital. b. the producer suffers losses by hiring more units of labor. c. the producer does not alter the resource allocation. d. the producer can maximize profit by hiring more units of labor. e. the producer will earn above normal profit by hiring less units of labor.
Which of the following is NOT one of the common explanations given for the U.S. trade deficit?
A. Other countries subsidize their exports. B. The U.S. government has a large budget deficit. C. The United States is a wealthy, stable country, making it attractive for loans from other countries. D. U.S. income tax rates are high compared to those in other countries.
If the interest rate is 5%, the current market value of $1 to be delivered in one year is
A. $0.91. B. $0.95. C. $1.00. D. $1.10.