You read that 40 firms that grow and export strawberries to the United States decide to form a cartel. The cartel aims to raise the price of strawberries and reduce output to increase profits for the strawberry growers. You predict that this cartel will probably
A. not be successful because it is difficult to export a perishable product like strawberries.
B. be successful because enforcing the rules among only 40 firms is very manageable.
C. not be successful because there are too many firms that are trying to organize the cartel and there are a number of good substitutes for strawberries.
D. be successful because the demand for strawberries is very inelastic.
Answer: C
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The unemployment rate is the number of unemployed people
A) divided by the sum of the number of people who are working and the number of people who are looking for work. B) and the number of people working fewer than their desired number of hours, divided by the number of people who are working or looking for work. C) divided by the total working-age population. D) divided by the number of people who are working.
Which of the following pairs of goods are NOT complements?
A) Hockey sticks and hockey pucks B) Computer CPUs and computer monitors C) On-campus student housing and off-campus rental apartments D) all of the above E) none of the above
If a country has a 4 percent annual growth in real GDP and a one percent growth in population, its per capita growth of real GDP is
A) five percent. B) four percent. C) three percent. D) 1/4 = 0.25 percent.
A tax that is imposed on an imported good is called a
A) tariff. B) quota. C) government license. D) patent.