International market failures:
A. are equally likely to be solved in the presence or absence of a world government.
B. are more likely to be solved in the presence of a world government.
C. are less likely to be solved in the presence of a world government.
D. do not occur in the presence or absence of a world government.
Answer: B
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A cartel is a group of firms that
A) produce differentiated products. B) produce products that are complements. C) agree to restrict output to boost their profit. D) agree to boost output to boost their profit.
Which of the following are possible justifications for government redistribution of income?
a. The desire for a more unequal distribution of income. b. Charity is a collective consumption good and thus might be underprovided. c. Redistribution acts as insurance against further coercion. d. Private redistribution of income merely shuffles money around the rich and upper-middle class.
Which of the following statements best describes the Phillips curve from a Keynesian viewpoint?
a. From a Keynesian viewpoint, the Phillips curve should slope down so that higher unemployment means lower inflation. b. From a Keynesian viewpoint, the Phillips curve should slope down so that lower unemployment means lower inflation. c. From a Keynesian viewpoint, the Phillips curve should slope down so that higher unemployment means higher inflation. d. From a Keynesian viewpoint, the Phillips curve should slope down so that lower unemployment means higher inflation.
By keeping new firms from entering the market, oligopolies are more likely to have
a. long-run economic profit b. low prices c. great efficiency d. decreasing marginal costs e. economies of scale