What happens if price falls below the market clearing price?
A. Supply shifts in.
B. Demand shifts out.
C. Quantity demanded decreases, quantity supplied increases, and a surplus results.
D. Quantity demanded increases, quantity supplied decreases, and a shortage results.
D. Quantity demanded increases, quantity supplied decreases, and a shortage results.
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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. Lee's dominant strategy depends on Jordan's choice. B. Lee does not have a dominant strategy. C. For Lee, seeing a documentary is a dominant strategy. D. For Lee, seeing a comedy is a dominant strategy.
Although the FDIC was created to prevent bank failures, its existence encourages banks to
A) take too much risk. B) hold too much capital. C) open too many branches. D) buy too much stock.
A community of 100 persons wants to redistribute (transfer) some income from themselves to members of group A. So far, they don't seem to be able to do what they say they want to do. This is most likely because each member of the community of 100 persons sees his contribution as __________________ relative to the total (of contributions) and therefore chooses to be a __________________
A) large; rent-seeker B) small; rent-seeker C) small; free rider D) large; free rider E) none of the above
The physical output that is due to the addition of one more unit of a variable factor of production is
A) average total cost. B) marginal cost. C) average product. D) marginal product.