A rational individual would be indifferent between ________ today and ________ four years from today if the interest is 20 percent
A) $100, $100
B) $48, $100
C) $30, $100
D) $100, $48
B
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A tax in an industry would result in: a. a decrease in consumer surplus
b. a decrease in producer surplus c. a decrease in the gains from trade. d. all of the above.
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. 
Is this game a prisoner's dilemma?
A. Yes, because if both firms played their dominant strategy, they each would earn a higher payoff than when they both play their dominated strategy. B. Yes, because if both firms played their dominated strategy, they each would earn a higher payoff than when they both play their dominant strategy. C. No, because cheating yields the highest payoff for both firms D. No, because neither firm has a dominant strategy
A monopolistic competitive firm is inefficient because the firm:
A. earns positive economic profit in the long run. B. is producing at an output corresponding to the condition that marginal cost equals price. C. is not maximizing its profit. D. produces an output where average total cost is not minimum.
If the market price of coffee is $3.00 per pound but the government will not allow coffee growers to charge more than $2.00 per pound of coffee, which of the following will happen?
A. The market will be in equilibrium at a price of $2.00. B. There will be a shortage of coffee. C. Demand must eventually decrease so that the market will come into equilibrium at a price of $2.50. D. Supply must eventually increase so that the market will come into equilibrium at a price of $2.50.