After participating members of a cartel form an agreement on common prices and output quotas, then an individual firm can increase its own profits by
A) increasing production.
B) increasing prices.
C) leaving the cartel.
D) incurring higher input costs.
A
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Which of the following terms refers to an unusually severe, prolonged recession, typically with an unemployment rate that exceeds 20%?
A) Depreciation B) Deflation C) Inflation D) Depression
Changes in the capital stock occur ________, and changes in the amount of labor that firms employ occur ________
A) quickly; quickly B) slowly; slowly C) slowly; quickly D) quickly; slowly
All other thing unchanged, when the Fed sells government bonds, it aims to shift the aggregate demand curve to the right.
a. true b. false
Suppose the market for grass seed is expressed as Demand: QD = 100 - 2p Supply: QS = 3p Price elasticity of supply is constant at 1. If the supply curve is changed to Q = 8p, price elasticity of supply is still constant at 1. Yet, with the new supply curve, consumers pay a larger share of a specific tax. Why?
What will be an ideal response?