Refer to the figure below. Player A can infer that Player B will: 
A. Player A cannot infer anything about what Player B will do given this matrix.
B. choose Right.
C. choose Left when A chooses Up and choose Right when A chooses Down.
D. choose Left.
Answer: D
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In January 2013, you can put your savings in a Bank of America account and be paid 2 percent per year. During 2013, suppose the inflation rate is 3.4 percent. In 2013 you earned a real interest rate of
A) 0.59 percent. B) 6.8 percent. C) 1.4 percent. D) -1.4 percent.
Marginal analysis involves undertaking an activity
A) only if its marginal costs are greater than its marginal benefits. B) until its marginal costs start declining. C) until its marginal benefits equal marginal costs. D) only when its marginal benefits are positive.
Cyclical unemployment is caused by
A) technological change. B) fluctuations in the business cycle. C) a dynamic economy in which people want to switch jobs sometimes. D) predictable shifts in production associated with different seasons.
The most that someone would pay today to receive a certain sum at some point in the future is known as
A) the interest rate. B) present value. C) future value. D) economic profit.