The Gulf Cartel and Sinaloa Cartel are the two major cartels in illegal drug trade in Mexico. Although, each of these cartels are better off sharing the market, they have an incentive to try to take the entire market. In which of the following ways is cheating among these cartel members dealt with in this region?
a. Through government taxation policy
b. Through legally enforceable contracts
c. Through restrictions on the supply of inputs used by the firms
d. Through output quota and price ceiling
e. Through violence and drug wars
e
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The Solow model is ________
A) the basic model of how technology changes over time B) the foundation for the classical economic thought of Adam Smith C) one of the dominant explanations of the business cycle D) based on the notion of diminishing marginal product of capital and labor
An increase in government spending will increase the government budget deficit, which tends to increase interest rates, increase saving, crowd out private investment, stimulate capital formation, and slow the level of economic activity
a. True b. False
Which of the following statements is true?
a. Free trade benefits a country when it exports but harms it when it imports. b. "Voluntary" limits on Canadian exports of hogs are better for the United States than U.S. tariffs placed on Canadian hog exports. c. Tariffs and quotas differ in that tariffs work like a tax and therefore impose deadweight losses, whereas quotas do not impose deadweight losses. d. Free trade benefits a country both when it exports and when it imports.
At very low levels of disposable income,
A. consumption is greater than disposable income. B. disposable income is greater than consumption. C. people save most of their incomes. D. consumption is negative.