1. Three competing companies agree to charge higher prices for their goods in order to make higher profits. If each company follows through on this commitment, what type of strategic behavior are they playing

A.

Negative-sum game.

B.

Zero-sum game.

C.

Noncooperative game.

D.

Cooperative game.

2. Which government program is NOT considered a transfer payment?

A.

401(K).

B.

Medicare.

C.

Social security.

D.

Food stamps.

3. Which of the following is NOT an attribute of a perfectly competitive market?

A.

Very easy entry and exit into the market.

B.

Unique goods with identifiable differences.

C.

Large numbers of buyers and sellers.

D.

Firms that are price takers.