Dean bakes his famous apple pies and sells them at the local farmer's market. If the price of apples increases, the
a. supply curve for Dean's pies will increase.
b. supply curve for Dean's pies will decrease.
c. demand curve for Dean's pies will increase.
d. demand curve for Dean's pies will decrease.
b
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Suppose Jordan and Lee are trying to decide what to do on a Friday. Jordan would prefer to see a comedy while Lee would prefer to see a documentary. One documentary and one comedy are showing at the local cinema. The payoffs they receive from seeing the films either together or separately are shown in the payoff matrix below. Both Jordan and Lee know the information contained in the payoff matrix. They purchase their tickets simultaneously, ignorant of the other's choice. 
Which of the following statements is true?
A. Both the lower-left and upper right cells are Nash equilibria. B. The upper-right cell is the only Nash equilibrium. C. The lower-left cell is the only Nash equilibrium. D. Both the upper-left and lower-right cells are Nash equilibria.
Identify a statement that is true about a linear demand curve.
A. Along a linear demand curve, both the slope and price elasticity are constant. B. Along a linear demand curve, the price elasticity is constant, but the slope varies. C. Along a linear demand curve, total revenues are constant. D. Along a linear demand curve, the slope is constant, but the price elasticity varies. Along a linear demand curve, total revenues are negative.
The Japanese yen makes up the largest portion of the international bond market.
a. true b. false
The main criticism leveled at the rational expectations school of economic thought is that
A. they assume too much influence due to monopoly power. B. they just go too far in ascribing rationality to the general population. C. the assumption that the velocity of circulation is predictable in the short run is not borne out by the facts. D. the assumption that labor union contracts create a rigid wage structure is unrealistic.