Cartel agreements are more likely to break down when
A) there are few variations in market demand.
B) new firms enter the market.
C) participating firms earn huge profits.
D) none of the above.
Answer: B
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Which of the following would shift the demand curve for autos to the right?
a. A fall in the price of autos. b. A fall in the price of auto insurance. c. A fall in consumers' incomes. d. A fall in the price of steel.
A major point of difference between President Obama and Senator McCain in the 2008 campaign was
A. the desirability of increasing the federal minimum wage. B. the wisdom of stabilizing the U.S. banking system. C. the temporary Bush tax cuts of 2003. D. all of the options are correct.
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.
A government-inhibited good is one that
A. would be underproduced by the private market. B. cannot be individually consumed. C. should be subsidized to correct the market failure and productive inefficiency. D. has been deemed socially undesirable via the political process.