1. Game theory focuses on

a. strategic behavior among interdependent firms.

b. professional athletic events.

c. competition between the players in board games.

d. competition between those in the political arena and those in the market place.

e. the interaction between firms in a competitive industry and those in a non-competitive industry.

2. "more elastic" means

a. unchanging

b. less desirable

c. more desirable

d. less responsive

e. more responsive

3. Which of the following is an example of a normative statement?

a. if the money supply falls, interest rates will rise.

b. teenage unemployment would be lower if there were no minimum wage.

c. the quantity of shirts sold increases as the price of shirts decrease.

d. the federal government's total spending should be reduced.

e. If interests rates go up, then construction activity will fall.