If two players engaged in a prisoner’s dilemma game are likely to repeat the game, they are more likely to cooperate than if they play the game only once.

What are market failures? Discuss examples of market failures. What can government do to improve the results of market failures?

The short-run individual supply curve of the perfectly competitive firm is:

a. the upward-sloping portion of its average variable cost curve. b. its average total cost curve. c. its marginal cost curve above average variable cost. d. its marginal cost curve above average total cost.

Using the money demand and money supply model, an open market purchase of Treasury securities by the Federal Reserve would cause the equilibrium interest rate to

A) increase. B) decrease. C) not change. D) increase if the economy is in a recession.

A person who chooses not to be in the labor force reveals that

A. either leisure or the value of nonpaid labor is worth zero to him. B. his potential product in the market is zero. C. either leisure or the value of nonpaid labor is worth more to him than the value that society places on his potential product in the market. D. either leisure or the value of nonpaid labor is worth less to him than the value that society places on his potential product in the market.