The table below shows how the payoffs to two political candidates depend on whether the candidates run a positive or negative campaign. The payoffs are given in terms of the percentage change in the number of votes received. 
Suppose that the Republican candidate tells the Democratic candidate that he intends to run a positive campaign. The likely result is that:
A. the Republican candidate will run a positive campaign, and the Democratic candidate will run a negative campaign.
B. both candidates will run a negative campaign.
C. the Republican candidate will run a negative campaign, and the Democratic candidate will run a positive campaign.
D. both candidates will run a positive campaign.
Answer: B
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The quantity of money in circulation in the United States is managed by
A) The Securities Exchange Commission. B) The United States Treasury. C) The Federal Reserve System. D) Wall Street.
The U.S. experience during the 1980s and 1990s illustrates that
a. fiscal policy is substantially more potent than monetary policy. b. a balanced budget is essential for the achievement of price stability. c. a monetary policy that keeps the inflation rate low and steady will help promote economic stability. d. there is a trade-off between inflation and unemployment-the unemployment rate can be reduced if we are willing to tolerate higher rates of inflation.
"Mediocre economists often consider only the immediate direct effects of a change, whereas a good economist will also consider indirect effects that may only become observable over time." This statement most clearly emphasizes
A) the law of comparative advantage. B) economizing behavior. C) the importance of secondary effects. D) the gains derived from voluntary exchange.
The presence of a learning curve may induce a decision maker in a startup firm to choose
A) low levels of output to exploit economies of scale. B) high levels of output to exploit economies of scale. C) low levels of output to shift the average cost curve down over time. D) high levels of output to shift the average cost curve down over time. E) to produce more than one output.