If the demand curve faced by a firm is horizontal, then the firm is ________ and a ________.
A. perfectly competitive; price taker
B. perfectly competitive; price maker
C. a monopoly; price taker
D. a monopoly; price maker
Answer: A
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The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. 
An industry spy from firm A comes to firm B and offers to pay B in exchange for B's certain and enforceable promise to not invest. What is the most that firm A will be willing to pay B to not invest?
A. $35 million. B. $20 million. C. $30 million. D. $50 million.
The transactions demand for money is related to money functioning as a
A) unit of accounting. B) store of value. C) medium of deferred payment. D) medium of exchange.
A price ceiling that is set below the equilibrium price
A) causes suppliers to raise their prices. B) is binding. C) is non-binding. D) creates a surplus.
Historically, household debt in the U.S. had been:
A. rising steadily since the Great Depression until the early 2000s, when it accelerated. B. rising steadily since the Great Depression until the early 2000s, when it declined. C. fairly constant since the Great Depression until the early 2000s, when it accelerated. D. fairly constant since the Great Depression until the early 2000s, when it declined.