P-TV and QRS-TV are trying to decide whether to air a sitcom or a reality show in a given time slot. Viewers like both sitcoms and reality shows, but sitcoms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below. 
Suppose QRS-TV enters into an agreement with P-TV that gives QRS-TV the exclusive right to air a reality show during this time slot. QRS-TV would be willing to pay P-TV ________ in order to persuade P-TV to enter into this agreement.
A. no more than $5 million
B. more than $10 million
C. no more than $10 million
D. nothing
Answer: C
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If a tax is imposed on a market with inelastic demand and elastic supply, then
A. it is impossible to determine how the burden of the tax will be shared. B. sellers will bear most of the burden of the tax. C. the burden of the tax will be shared equally between buyers and sellers. D. buyers will bear most of the burden of the tax.
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A. Buying raw materials from a Chinese firm instead of a U.S. firm. B. Buying computers assembled in Mexico that used U.S. parts. C. Building a factory in Canada and hiring Canadian workers. D. All of the choices are correct.
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A. a recessionary gap B. cost-push inflation C. a deflationary gap D. none of these