The goal of a cartel is to
A) increase competition among members.
B) maximize industry profits.
C) increase industry supply.
D) none of the above.
Answer: B
You might also like to view...
Refer to Figure 23-1. If the economy is at point J, what will happen?
A) Inventories have fallen below their desired level, and firms increase production. B) Inventories have risen above their desired level, and firms increase production. C) Inventories have risen above their desired level, and firms decrease production. D) Inventories have fallen below their desired level, and firms decrease production.
Which of the following statements is NOT true of external benefits?
A. External benefits lead to an underallocation of resources to the production of the good that has the external benefit. B. External benefits are a good thing for the allocation of resources because people are getting something at no cost. C. External benefits lead to too few of the goods that have the external benefit being produced. D. External benefits lead to a price in the market that is too high.
Refer to the below graph. Assume that the economy is in initial equilibrium where AD1 intersects AS1. If there is a decrease in aggregate demand to AD2, then according to mainstream economists, if prices and wages are not flexible, this will result in an equilibrium at point:
A. E
B. B
C. C
D. D
GDP tends to overstate economic well-being because it takes into account ________.
A. improvements in product quality over time B. expenditures undertaken to correct pollution C. nonmarket activities, such as the productive work of homemakers D. illegal activities of individuals and businesses