Player 1 and Player 2 are playing a game in which Player 1 has the first move at A in the decision tree shown below. Once Player 1 has chosen either Up or Down, Player 2, who can see what Player 1 has chosen, must choose Up or Down at B or C. Both players know the payoffs at the end of each branch. 
If Player 2 could make a credible commitment to choose either Up or Down when his or her turn came, then what would Player 2 do?
A. Player 2 would commit to choosing Down.
B. Player 2 would commit to choosing Up.
C. Player 2 would not commit to choosing either strategy.
D. Player 2 would commit to mimicking Player 1's strategy.
Answer: A
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The questions that an economic system attempts to solve include
A) what to produce. B) how to produce items. C) for whom items are produced. D) all of the above.
When using the traditional command-and-control approach to environmental regulation, the government attempts to:
a. set a minimum requirement and then allows the firm to determine the most efficient method for achieving this requirement. b. determine the most efficient method for different industries. c. make allowances for differences across industries and between firms. d. set standards that are applicable to all situations and does not recognize unique circumstances.
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a. True b. False Indicate whether the statement is true or false