Junkfood Jill spends all of her income on jellybeans and cola. Suppose that Jill's income is 30, ...

Junkfood Jill spends all of her income on jellybeans and cola. Suppose that Jill's income is 30, the price of a bag of jellybeans is 6, and the price of a bottle of cola is 2.
 
  If bags of jellybeans are graphed along the vertical axis and bottles of cola are graphed along the horizontal axis, what is the slope of the budget line? A) 3
  B) -3
  C) 1/3
  D) -1/3

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Ques. 2

Which of the following leads to the demanders paying all of a tax?
 
  A) The supply is unit elastic.
  B) The supply is perfectly inelastic.
  C) The demand is perfectly elastic.
  D) The demand is perfectly inelastic.

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Ques. 3

Assume that the economy is at a long run equilibrium and oil prices rise. As a result, the ________ shifts ________.
 
  A) AD; rightward
  B) AD; leftward
  C) SAS; rightward
  D) SAS; leftward

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Ques. 4

In the figure above, if the interest rate is 6 percent
 
  A) there is a 0.1 trillion excess quantity of money and the interest rate will rise.
  B) there is a 0.1 trillion excess quantity of money and the interest rate will fall.
  C) the money market is in equilibrium and the interest rate will remain constant.
  D) there is a 0.1 trillion excess demand for money and the interest rate will rise.

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Ques. 5

In the prisoners' dilemma game, when each player takes the best possible action given the action of the other player, ________.
 
  A) a competitive equilibrium is reached
  B) one player denies and one player confesses
  C) both players deny
  D) a Nash equilibrium is reached

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Ques. 6

In the above figure, tax revenue is at a maximum when the tax rate is
 
  A) 0 percent.
  B) 30 percent.
  C) 50 percent.
  D) 100 percent.

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Ques. 7

In the above table, the private sector has a
 
  A) surplus of 300 billion.
  B) deficit of 300 billion.
  C) deficit of 200 billion.
  D) deficit of 400 billion.