For an economy consisting of households and businesses only, which of the following is consistent with the circular flow of income and production? (A) Households are producers of goods and services and consumers of resources. (B) Households are users of resources, and businesses are sources of saving. (C) Households are suppliers of resources and consumers of goods and services. (D) Businesses are users of taxes, and households are sources of taxes. (E) consumers of goods and services. (C) Households are suppliers of resources and consumers of goods and services.

In which of the following games is it clearly the case that the cooperative outcome of the game is good for the two players and bad for society? a. two oil companies own adjacent oil fields over a common pool of oil, and each company decides whether to drill one well or two wells. b. two airlines dominate air travel between city a and city b, and each airline decides whether to charge a "high" airfare or a "low" airfare on flights between those two cities. c. two superpowers decide whether to build new weapons or to disarm. d. in all of the above cases, the cooperative outcome of the game is good for the two players and bad for society