The story about the mass slaughter of buffalo in the United States, which allowed the products to be exported during the 1870s, is an example of:
a. the first-mover principle.
b. the principle of comparative advantage.
c. the tragedy of the commons.
d. export subsidies.
Ans: c. the tragedy of the commons.
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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 likely to increase the probability that:
A. Bagel World cheats. B. both firms abide. C. Bagels 'R' Us cheats. D. both firms cheat.
The Clean Air Act of 1970
a. set up a depletion tax system b. reduced air pollution standards c. recognized air as a resource d. established a system of transferable pollution rights e. forbade producers to emit any pollutants into the air
Income generated by a nation's domestic production
a. is less than its domestic production. b. is equal to its domestic production. c. is greater than its domestic production. d. could be less than, equal to, or greater than its domestic production.
Which of the following is likely to be a government objective?
a) Lower unemployment b) Negative economic growth c) Very high inflation d) A recession