In Monetarist theory, the role of the government should be to:
a. Use fiscal policies to ensure that aggregate demand is sufficient to meet aggregate supply.
b. Control prices.
c. Seek to raise productivity by setting up and enforcing fair rules of behavior, encouraging competitive markets, imposing reasonable taxes, and creating stable and predictable political environments.
d. All of the above.
e. None of the above.
.C
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According to the speculative demand for money, as interest rates fall, the quantity demanded of money will rise
Indicate whether the statement is true or false
In perfect competition, P = MC is the condition that
A. ensures that firms produce the right things. B. holds only in the long run. C. guarantees that firms will make an economic profit. D. encourages firms to enter an industry.
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 dominated strategy, they each would earn a higher payoff than when they both play their dominant strategy. B. No, because neither firm has a dominant strategy. C. Yes, because if both firms played their dominant strategy, they each would earn a higher payoff than when they both play their dominated strategy. D. No, because cheating yields the highest payoff for both firms.
A sporting goods store has estimated the demand curve for a popular brand of running shoes as a function of price. Use the diagram to answer the question that follow.
A. Calculate demand elasticity using the midpoint formula between points A and B, between points C and D, and between points E and F
b. If the store currently charges a price of $50, then increases that price to $60, what happens to total revenue from shoe sales (calculate P Q before and after the price change)? Repeat the exercise for initial prices being decreased to $40 and $20, respectively