Cartels tend to break down unless they can obtain government assistance because cartel members will typically try to
A) charge higher prices than the prices agreed upon.
B) include sunk costs in their prices.
C) lower their costs below the agreed-upon levels.
D) sell more than their quotas.
E) do all of the above.
D
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When there are no externalities
A) social costs are greater than private costs. B) social costs are less than private costs. C) private costs are greater than social costs. D) private costs equal social costs.
When a consumer spends less time enjoying leisure and more time working, she has
a. lower income and therefore cannot afford more consumption. b. lower income and therefore can afford more consumption. c. higher income and therefore cannot afford more consumption. d. higher income and therefore can afford more consumption.
Suppose that supply increases and demand decreases. What is the most likely effect on price and quantity?
What will be an ideal response?
If economists say that a 7 percent growth in the money supply will increase aggregate demand by 7 percent, they are assuming that velocity
A. will decrease. B. is constant. C. will increase. D. is unpredictable.