Largesse and Ginor are major producers of commercial aircraft. Which action indicates that the two firms are colluding?
a. Largesse has a binding contract with its main supplier of raw materials.
b. Both firms benefit from economies of scale in their industry.
c. Largesse has a binding contract with Ginor to restrict production.
d. Both firms earn zero economic profits over the long run.
c. Largesse has a binding contract with Ginor to restrict production.
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To be officially classified as unemployed, a person must be
A) at least 18 and not working. B) laid off or fired. C) collecting unemployment benefits. D) at least 16, not working and actively seeking employment.
Which of the following is true regarding scarcity?
a. Scarcity could be eliminated if all economies of the world would work together to solve world hunger. b. Scarcity could be eliminated if we had full employment. c. It is impossible to eliminate scarcity, given limited resources and unlimited wants. d. Scarcity could be eliminated if all economies of the world would adopt communism. e. Scarcity could be eliminated if all economies of the world would adopt a free market system.
The prisoner's dilemma is a game in which the gains from cooperation are smaller than the rewards from pursuing self-interest
a. True b. False Indicate whether the statement is true or false
Suppose that elementary education creates a positive externality. If the government subsidizes education by an amount equal to the per-unit externality it creates, then
a. the equilibrium quantity of education will equal the socially optimal quantity of education. b. the equilibrium quantity of education will be greater than the socially optimal quantity of education. c. the equilibrium quantity of education will be less than the socially optimal quantity of education. d. There is not enough information to answer the question.