The market for bagels contains two firms: BagelWorld (BW) and Bagels'R'Us (BRU). The owners of the two firms decide to fix the price of bagels. The table below shows how each firm's profit (in dollars) depends on whether they abide by the agreement or cheat on the agreement. 
Suppose the game above is repeated every day, and both firms adopt the following strategy: cooperate on the first day, then if the other firm cheats, cheat the next day, and if the other firm abides, abide the next day. This type of strategy is known as: ________.
A. the cartel solution
B. a prisoner's dilemma
C. a tit-for-tat strategy
D. the golden rule
Answer: C
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Altogether, total health care spending per person in the United States is
A) about $3,600. B) over $8,000. C) roughly $26,000. D) about $50,000.
If the marginal propensity to consume (MPC) is 0.75, and if policy makers wish to increase real GDP by $300 million, then by how much would they have to change taxes?
a. -$300 million. b. -$200 million. c. -$100 million. d. -$50 million.
The airlines industry is dominated by three firms with the following market shares: Quartz (50 percent), Modine (25 percent), and Tetran (20 percent). Which action identifies the price leader in the industry?
a. Quartz unilaterally announces that it is raising its fares. b. Modine increases its fares after its competitors announce price hikes. c. Modine and Tetran formally meet and announce they are increasing their fares. d. Tetran rises its fares following a rate hike by the other firms in the industry.
The subjective evaluation method that requires the evaluator to rank the employees on a number of different performance factors using a five point scale is called a(n):
A. 360-degree performance system. B. internal benchmarking system. C. standard rating scale system. D. goal-based rating system.