A U.S. firm produces nail guns in the first quarter of 2010 and adds them to its inventory. In the second quarter of 2010 the firm sells the nail guns to a U.S. construction company. In which quarter(s) is (are) GDP higher?

Which of the following statements is TRUE?

A) Bank failure is limited to banks that have mismanaged their assets. B) Bank failure is limited to banks that have invested in real estate. C) Bank failure is limited to banks that have invested in government bonds. D) Bank failure is limited to a few banks. E) Bank failure is NOT limited to banks that have mismanaged their assets.

Refer to the profits-payoff table for a duopoly. If initially firms X and Y are charging $5 and $4 respectively:

A.  the two firms will be maximizing joint profits.
B.  Y will find it advantageous to raise its price if it was certain X would not alter its price.
C.  X will find it advantageous to raise its price if it was certain Y would not alter its price.
D.  both firms would find it advantageous to collude to raise their prices by $1 each.