Cartels are unstable for each of the following reasons except which one?
A) entry by new firms
B) the self-interest of each member
C) barriers to entry
D) the bargaining necessary to form a cartel
C) barriers to entry
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If there is employment discrimination against minorities, this will cause the:
a. supply of their services to increase, and their wages to fall. b. demand for their services to decline, and their wages to fall. c. supply of their services to decline, and their wages to rise. d. demand for their services to decline, and their wages to rise.
Accountants calculate __________ differently than do economists: a. Total revenue
b. Total costs. c. Profits. d. Both total costs and profits.
Inflation reduces the average real income in the economy and redistributes purchasing power
a. True b. False
An import quota on a product protects domestic industries by:
A. reducing the foreign supply to the domestic market and, thereby, raising the domestic price. B. increasing the foreign supply to the domestic market and, thereby, lowering the domestic price. C. increasing the domestic demand for the product and, thereby, increasing its price. D. providing the incentive for domestic producers to improve the efficiency of their operation and, thereby, reduce their per-unit costs of production.