Assume the Environmental Protection Agency imposes an excise tax on polluting firms. In which of the following situations would we expect the additional costs to be borne most heavily by consumers?
A. Demand is highly elastic and supply is highly inelastic.
B. Demand and supply are both highly elastic.
C. Demand and supply are both highly inelastic.
D. Demand is highly inelastic and supply is highly elastic.
Answer: D
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Which is not a cause for business cycles considered by macroeconomists?
A) shocks to money supply B) greed C) shocks to technological ability D) variations in optimism
The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. 
An industry spy comes to firm B and offers to pay B in exchange for B's certain and enforceable promise to not invest. How much must the spy pay B?
A. At least $15 million. B. At least $50 million. C. At least $35 million. D. $0
The initial impact of ________ the money supply ________ the balance of payments.
A. contracting; has no effect on B. expanding; improves C. contracting; worsens D. expanding; worsens
The study of the choices made by individual households, firms, and government is called:
A. macroeconomics. B. microeconomics. C. managerial economics. D. market economics.