In the circular-flow diagram, in the markets for
a. goods and services, households and firms are both sellers.
b. goods and services, households are buyers and firms are sellers.
c. the factors of production, households are buyers and firms are sellers.
d. the factors of production, households and firms are both buyers.
b
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The figure above shows the supply curve for soda. The market price is $1.00 per soda. The marginal cost of the 20,000th soda is
A) $0.00. B) $0.50. C) $1.00. D) more than $1.00. E) None of the above answers is correct.
The prisoners' dilemma is a tool of social analysis, and it shows why
A) individuals sometimes behave in ways inconsistent with their own best interest. B) judges sometimes hand down sentences heavier or lighter than the law recommends. C) people who break the law and are caught are behaving irrationally. D) people who break the law and are caught are behaving rationally. E) societies sometimes produce situations no member of the society wants.