In the long run, which of the following depends primarily on the growth rate of the money supply?
a. the natural rate of unemployment and the inflation rate
b. the natural rate of unemployment but not the inflation rate
c. the inflation rate but not the natural rate of unemployment
d. neither the natural rate of unemployment nor the inflation rate
Ans: c. The inflation rate but not the natural rate of unemployment
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Lee and Cody are playing a game in which Lee has the first move at A in the decision tree shown below. Once Lee has chosen either aggression or cooperation, Cody, who can see what Lee has chosen, must choose either aggression or cooperation at B or C. Both players know the payoffs at the end of each branch. 
In the equilibrium of this game, Lee chooses ________, and then Cody chooses ________.
A. aggression; cooperation B. cooperation; cooperation C. cooperation; aggression D. aggression; aggression
Before a market allocation of goods on the production possibilities curve can be judged efficient, one must evaluate “what” goods the market produced.
Answer the following statement true (T) or false (F)
Which is more effective in blocking imports, a tariff or a quota?
What will be an ideal response?
In many markets for personal services (such as shoe repair or lawn care) with low start-up costs,
a. production exhibits constant returns to scale b. economies of scale are exhausted rapidly c. economies of scale are exhausted slowly d. economies of scale are never exhausted e. there are only short-run costs, no long-run costs