Which of the following would not cause an increase in the demand for cheese?
a. a decrease in the price of crackers, which are consumed with cheese
b. an increase in the income of cheese consumers, assuming that cheese is a normal good
c. an increase in the population
d. a technological advance that makes it cheaper to produce cheese
d
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What is meant by crowding out? Explain the difference between crowding out in the short run and in the long run
What will be an ideal response?
The unreported or illegal production of goods and services in the economy that is not counted in GDP is called
a. money laundering b. the underground economy c. net personal disposable income d. indirect national income e. unreported capital consumption
A restaurant that has market power can
a. minimize costs more efficiently than its competitors. b. influence the market price for the meals it sells. c. reduce its marketing budget more than its competitors. d. ignore profit-maximizing strategies when setting the price for its meals.
Discuss the actions a cartel can take to help it sustain its market power and longevity.
What will be an ideal response?