In order to make oil profits as large as possible, OPEC meets to set oil production quotas for its members. OPEC is best classified as a:
a. monopoly.
b. cartel.
c. kinked demand industry.
d. price-leadership industry.
b
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A decrease in the real interest rate in the United States will cause the dollar to ________ relative to other currencies and ________ net exports and real GDP
A) appreciate; increase B) appreciate; reduce C) depreciate; increase D) depreciate; reduce
When business leaders become pessimistic about future sales and profits and increase their spending on plant and equipment, their expectations are usually fulfilled
a. True b. False Indicate whether the statement is true or false
Oligopolies that produce identical products such as steel have
A. no control over the price of their product because of the availability of perfect substitutes. B. no control over the price of their product because of the large number of buyers in the market. C. some control over the price of their product because each firm sells a substantial share of the market. D. some control over the price of their product because of the small number of buyers in the market.
If business inventories at the beginning of the year equal $20 billion and equal $30 at the end of the year, then GDP will:
A. decrease by $10 billion. B. increase by $10 billion. C. decrease by $20 billion. D. increase by $30 billion.