Most cartels cease to be effective because:
A. the dominant firm buys out the other firms.
B. of the incentive to cheat on the cartel agreement.
C. of strict enforcement of antitrust legislation.
D. consumers discover the cartel and buy from other firms instead.
Answer: B
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Consider a country's labor market that is initially in equilibrium. Which of the following changes will be observed if a massive earthquake drastically reduces its total population?
a. The labor supply curve will shift to the right. b. The labor supply curve will shift to the left. c. The labor demand curve will shift to the left. d. The equilibrium wage rate will decrease.
Which of the following changes will shift the money demand curve rightward?
What will be an ideal response?
An In the News article titled "Jury Awards $26 Million For Suppressed Technology" reported, that a county superior court jury in Oakland ordered Universal to pay $25.7 million to two California entrepreneurs. The most correct implication of this is that Universal
A. Makes zero economic profits. B. Charges lower prices than might be expected in a competitive market. C. Is a highly efficient, high-tech industry. D. Attempted to suppress R&D.
A technological improvement can cause the production possibilities curve to shift outward because
A. maximum feasible outputs of both goods increase. B. it increases costs and contributes to lower production rates. C. it causes increases in unemployment. D. production will fall, but jobs will be saved.