Collusion refers to a situation where rival firms decide to:
A. Compete aggressively against each other
B. Cheat on each other
C. Agree with each other to set prices and output
D. Combine their operations and merge with each other
C. Agree with each other to set prices and output
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Hyperinflation is defined as
A) declining inflation rates. B) rising but low inflation rates. C) very high inflation rates. D) very low inflation rates.
Indirect business taxes have to be added to national income to get net domestic product because the
a. price of the good includes these taxes, which are not payments to any factor of production b. price of the good includes these taxes, which are payments to the government which is a factor of production c. price of the good excludes these taxes and therefore they have to be added to national income to get net domestic product d. price includes these taxes, which, although part of national income, are not accounted for e. national income includes all taxes that a firm pays to the factors of production
When there is a building that is used for production, but no one has clear property rights to it
A) this is known as "dead capital" and causes no production. B) this is known as "dead capital" and causes efficient production. C) resources are guided to their best use by "the invisible hand." D) this is known as "dead capital" and causes inefficient production.
A production possibilities curve that is bowed out represents the case of
A) constant costs. B) increasing costs. C) decreasing costs. D) internal costs. E) external costs.