A cartel can remain powerful even when all the members engage in secret price cuts.
a. true
b. false
Answer: a. true
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What is most affected by the expected rate or pace of economic growth?
A) investment spending B) government purchases C) unemployment D) exports
Suppose Italy currently lends 1.5 billion euros to other nations and borrows 1 billion euros from other nations. Italy is definitely a
A) net borrower. B) net lender. C) creditor nation. D) debtor nation.
The most efficient distribution of pollution abatement is such that the:
A. largest reductions in pollution are made by the largest polluters. B. marginal cost of abatement is the same across all polluters. C. extent of pollution abatement is the same across all geographic regions. D. extent of pollution abatement is the same across all polluters.
The _____ of using the market for corporate control make it important to build incentives into executive pay packages that can reduce _____ by better aligning the incentives of shareholders and managers
a. benefits; principal/agent problems b. costs and uncertainties; principal/agent problems c. benefits; influence costs d. costs and uncertainties; influence costs