Suppose two companies, Macrosoft and Apricot, and considering whether to develop a new product, a touch-screen t-shirt. The payoffs to each of developing a touch-screen t-shirt depend upon the actions of the other, as shown in the payoff matrix below (the payoffs are given in millions of dollars). 
Which of the following statements is correct?
A. Apricot's dominant strategy is to not develop a touch screen t-shift.
B. Apricot's dominant strategy is to develop a touch-screen t-shirt.
C. Apricot does not have a dominant strategy.
D. Apricot's dominant strategy is to develop a touch-screen t-shirt if Macrosoft does not.
Answer: C
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Why doesn't the government print money in order to solve its debt problems?
Funding for the operations of the Board of Governors of the Federal Reserve is derived from
A) taxes collected from commercial banks. B) the governments of the states in which the district banks operate. C) appropriations from the United States Congress. D) earnings of the Federal Reserve district banks.
An expansionary fiscal policy will lead to
a. higher interest rates, an appreciated dollar, and reduced net exports. b. higher interest rates, an appreciated dollar, and increased net exports. c. reduced interest rates, an appreciated dollar, and reduced net exports. d. reduced interest rates, an appreciated dollar, and increased net exports.
When someone stops mowing his own lawn and hires a lawn service to mow it for him, what happens to GDP? (Assume that the lawn service reports its income to the IRS.)
A. It falls because hiring a lawn service reduced the amount of other goods that the person could purchase. B. It rises because GDP includes the value of the additional leisure time that the person gets by hiring someone else. C. Nothing; the same lawns are being mowed, so production has not changed. D. It rises because when the person used to mow his own lawn it was a nonmarket production, which is not counted, but the hiring of the lawn service is counted in the GDP.