Those that believe that the recent period of slow growth will pass and that higher levels of growth can be created through conservative policies focus on ones that would cause
A. decreases in aggregate supply.
B. increases to aggregate supply.
C. increases to aggregate demand.
D. decreases in interest rates.
Answer: B
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Cartel members have an incentive to cheat because
a. the cartel does not maximize profit b. the cartel price is the competitive price c. each member's output quota is more than the output it would produce as a non-cartel member d. each member's MR is greater than the cartel's MC e. industry economic profit would be higher under competitive conditions
Realism and liberalism hold very different theories about international law. Theorists who promote realism see international law as a way to
a. strengthen the foundation of global politics. b. promote power politics and self-interest. c. regulate relations in mutually beneficial ways. d. redress much of the injustice in the world.
The bonding critique criticizes the model of efficiency wages because
A. workers do not know how well the firm can monitor worker effort. B. firms cannot issue bonds to pay for labor costs. C. profit-maximizing firms should never be willing to pay more than the competitive wage. D. worker effort is unrelated to wages. E. workers should be willing to give the firm collateral that the firm would keep if the firm ever caught the worker shirking, and in exchange the worker would be willing to work for a wage less than the efficiency wage.
Which of the following was NOT part of Korean industrial policies?
A) An aggressive promotion of exports along with high levels of protection B) Directed credit and tax breaks given to targeted industries C) Bailing out bankrupt firms without any attempt to dispose distressed firms D) Allowing exporting firms to borrow funds at below-market interest rates