Lolita wants to purchase a beautiful art deco office building built in the 1920s, tear it down, and construct a rather bland, glass-and-steel office building that will confer $2 million of benefits to society. In its current state, the art deco office building is worth $1.7 million. Lolita goes to the city council with her proposal and tells the council members that the new office building will hold more tenants and therefore increase employment and tax revenues. If the city council agrees to use eminent domain to allow Lolita to proceed with her project, society as a whole will
A) be made poorer since eminent domain is a costly process.
B) be made poorer since the area will be less aesthetically beautiful.
C) be made richer since the project confers benefits that are greater than the current value of the art deco office building.
D) not be affected since the project only encompasses one small parcel of land.
C
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Suppose Firm A and Firm B are considering whether to invest in a new production technology. For each firm, the payoff to investing (given in thousands of dollars per day) depends upon whether the other firm invests, as shown in the payoff matrix below. 
Is this game a prisoner's dilemma?
A. No. B. Yes. C. It cannot be determined. D. Only when both Firm A and Firm B invest.
The sum of all the individual supply curves for a product is called
a. total supply. b. market supply. c. aggregate supply. d. total output.
A positive externality exists when the actions of one party impose benefits on a second party.
Answer the following statement true (T) or false (F)
Distribution of HIV/AIDS drugs without charge to victims of the disease in Africa
A. conflicts with the incentives of drug companies to bring such drugs to market. B. must be done because it is the only ethical course of action. C. could only be undertaken by faith-based organizations, which can operate with no cost. D. cannot be done because it would unconscionably inflate drug company profits.