Under the cartel, the individual firm's quantity is (assuming it obeys its quota) 
Figure 42.2
A. Q1.
B. Q2.
C. Qa.
D. Qb.
Answer: A
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The calculators of a price index use a “bundle” or “basket” of representative goods and services. What tradeoff are they making in this calculation?
a. ethics for monetary gain b. logic for relevance c. accuracy for convenience d. tradition for innovation
If the federal government were to run a budget deficit, this would:
A. increase the size of the national debt. B. reduce the size of the national debt. C. leave the size of the national debt unchanged. D. increase the national debt only if the government also expands the supply of money.
If Congress passed new laws significantly increasing the regulation of business, this action would tend to:
A. increase per-unit production costs and shift the aggregate demand curve to the left. B. increase per-unit production costs and shift the aggregate supply curve to the right. C. decrease per-unit production costs and shift the aggregate supply curve to the left. D. increase per-unit production costs and shift the aggregate supply curve to the left.
Which of the following is TRUE of an oligopoly?
A) They engage in nonprice competition. B) They do not react to actions of their competitors. C) Each firm produces a small portion of the total output. D) Firms do not care what their competitors do.