As the number of firms in a cartel increases, the easier it is to enforce the cartel agreement
a. True
b. False
Indicate whether the statement is true or false
False
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According to a New York Times article, shoppers from New York City have played a game of "retail arbitrage" by shopping at malls in Northern New Jersey, a state where there is no tax on clothing and shoes
Even after accounting for transactions costs, shoppers could still save money on their clothing and footwear purchases. Source: Ken Belson and Nate Schweber, "Sales Tax Cut in City May Dim Allure of Stores Across Hudson," New York Times, January 18, 2007. Is the term "arbitrage" correctly used here? A) Yes, arbitrage applies even if no resale takes place; in this case the profits are pocketed by the customers themselves. B) No, "arbitrage" does not apply to markets that are not in the same geographic area. C) No, "arbitrage" means buying at a low price and reselling at a higher price but no resale takes place here. D) Yes, because shoppers were able to purchase items at lower prices even after deducting their transactions costs.
Which of the following correctly describes the calculation of the unemployment rate?
A. Unemployment rate = employed ÷ unemployed × 100 B. Unemployment rate = unemployed ÷ civilian labor force × 100 C. Unemployment rate = unemployed ÷ employed × 100 D. Unemployment rate = unemployed ÷ adult population × 100
Which of the following is NOT an example of positive supply-side policy?
A. Higher marginal tax rates. B. Trade liberalization. C. Improving infrastructure. D. Eliminating excessive government regulation.
The two flows, or things being exchanged, in the circular flow model are:
A. land and labor. B. inputs and outputs. C. imports and exports. D. inputs/outputs and money.