In a sense, a cartel is self-destructive because
A) it reduces consumer surplus.
B) it sets price above marginal cost.
C) each cartel member has the incentive to cheat on the cartel.
D) each cartel member earns economic profit.
C
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The table above gives the labor market for a small foreign economy. Equilibrium in the labor market occurs at a real wage rate of
A) $7.15 per hour. B) $8.50 per hour. C) $9.00 per hour. D) $7.65 per hour. E) $8.00 per hour.
Suppose the corn-producing industry of the U.S. is a price taker in the world market and government puts a ban on imports. The corn industry also receives subsidy from the home government. Then
A) social welfare will increase if the ban on imports is removed. B) everyone will be better off if both ban on imports and subsidy are removed. C) social efficiency will be improved if both ban on imports and subsidy are removed. D) the deadweight loss is reduced if subsidy is removed.
As a person's income rises, eventually the ________ effect outweighs the ______ effect.
Fill in the blank(s) with the appropriate word(s).
Seasonal or cyclical variation in a time series model
A. is regular in nature and can be accounted for by dummy variables. B. can decrease the accuracy of a forecast if not accounted for by dummy variables. C. exhibits irregular variation that can be accounted for by dummy variables. D. both a and b E. both b and c