The incentive to cheat within a cartel increases with an increase in the following factors, except:
A. The number of firms in the cartel
B. Economic performance and industry sales
C. The number of potential entrants into the industry
D. The cost-differences among firms
B. Economic performance and industry sales
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Whenever the interest rate goes up, the price of bonds will go down
a. True b. False Indicate whether the statement is true or false
If the production of ukuleles creates a negative externality that is NOT corrected for by the government, the equilibrium quantity of ukuleles is
A) higher than optimal. B) lower than optimal. C) efficient. D) at a optimal level.
A decrease in individual income taxes ________ disposable income, which ________ consumption spending
A) decreases; increases B) increases; increases C) increases; decreases D) decreases; decreases
Suppose the MPC in the economy in Figure 10.2 equals 0.75 and the shift from AD0 to AD1 was caused by a decrease in investment of $20 billion. What will the magnitude of the second decrease in aggregate demand be (for example, AD1 to AD2)?
A. $120 billion. B. $80 billion. C. $15 billion. D. $20 billion.