If two firms use a tit-for-tat scheme to maintain cartel pricing, and one firm chooses a high price in the current time period, then:
A. that firm will also choose a low price in the next time period.
B. that firm will also choose a high price in the next time period.
C. the other firm will choose a low price in the next time period.
D. the other firm will choose a high price in the next time period.
Answer: D
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With a large and growing deficit, the Fed may face pressure from the government to
A) decrease the inflation tax. B) decrease the quantity of money to keep the value of money high. C) keep interest rates low, but the Fed risks inflation by doing so. D) increase the velocity of circulation. E) increase the quantity of money to prevent inflation.
Isabel can work as a rodeo clown, where the probability of being killed in a work-related accident is 5/10,000, or she can earn work as a sword swallower, where the probability of being killed in a work-related accident is 3/10,000
Using the compensating differential approach, the value of Isabel's life is $5 million. How much more per year will working as a rodeo clown pay than working as a sword swallower?
Suppose the monopolist only sold the goods separately. What price will the monopolist charge for Good 1 to maximize revenues for good 1?
a. $2,300 b. $2,800 c. $1,200 d. $1,700
Stagflation is a combination of ________ and ________.
A. inflation; recession B. deflation; expansion C. excessive aggregate spending; excessive aggregate supply D. monetary policy; fiscal policy