Cartels can more easily detect cheating by cartel members if the products sold by each member are largely homogeneous
As product quality varies, the observed prices charged by cartel members may be due to differences in the products, or they may be due to cheating. Which of the following goods would more difficult to monitor for potential cheating? A) Aluminum ingots
B) Industrial concrete
C) Steel beams
D) Luxury yachts
D
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In Germany, banks __________ shares in the large firms they lend to, which __________ lender-stockholder conflict
A) are not allowed to own; is their way of minimizing B) are not allowed to own; gives rise to C) own a considerable bloc of; is their way of minimizing D) own a considerable bloc of; gives rise to
Under the U.S. system of regulation, most regulars are selected from
A) politicians and their friends. B) the industry that is to be regulated. C) consumer advocacy groups. D) university professors who understand the nature of the industry and who understand the true interests of consumers.
The self-interest theory of government was suggested by:
A. James Buchanan. B. Charles M. Tiebout. C. bureaucrats. D. the European Union.
The leader of Atlantis hires you as an economic consultant. He is concerned that the output level in Atlantis is too low and that this will cause prices to fall. He feels that it is necessary to increase output by $200 billion. He tells you that the MPC in Atlantis is 0.8. Which of the following would be the best advice to give to the Atlantis president?
A. increase government spending by $200 billion B. reduce government spending by $100 billion C. increase government spending by $100 billion D. decease taxes by $50 billion