Which of the following conditions can help prolong the life of a cartel?
A) There are only a few firms in the market and they all belong to the cartel.
B) There are many firms in the market that are not members of the cartel.
C) It is difficult to know what price any cartel member is actually charging.
D) The cartel has no ability to punish members who cheat on the cartel.
A
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The action time lag is the time period that elapses
A) between when an economic problem manifests itself and it is officially acknowledged. B) between the recognition of an economic problem and implementing policies to solve it. C) between implementing policies to solve an economic problem and when the results of that policy can be measured. D) between the beginning of the budgetary process and the final budget resolution.
Consumer surplus is
a. the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it. b. the amount a buyer is willing to pay for a good minus the cost of producing the good. c. the amount by which the quantity supplied of a good exceeds the quantity demanded of the good. d. a buyer's willingness to pay for a good plus the price of the good.
Low inflation rates and high inflation rates impose different costs on society.
Answer the following statement true (T) or false (F)
The federal funds rate is the interest rate that
A. the government pays on securities that mature in less than a year. B. commercial banks charge their best customers to borrow money. C. the Fed charges commercial banks to borrow reserves. D. commercial banks charge each other for borrowing and lending reserves.