Suppose three firms form a cartel and agree to charge a specific price for their output. Each individual firm has an incentive to maintain the agreement because the firm's individual profits will be the greatest under the cartel arrangement
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following can occur, when the government imposes a price control on a market?
(a) Excess supply of a good/service. (b) Excess demand for a good/service. (c) Price is not at its equilibrium level. (d) All of the above.
Figure 10-4
Starting from long-run equilibrium at point F in , at which of the following points would short-run equilibrium occur following a decrease in resource prices?
a.
I
b.
F
c.
G
d.
H
If the consumer price index decreased from 1.66 to 1.59, then it must be the case that ________ relative to prices in the base year.
A. some prices rose and some prices fell B. the weighted average level of prices rose C. the weighted average level of prices fell D. all prices fell
Refer to the information provided in Figure 24.1 below to answer the question(s) that follow.
Figure 24.1Refer to Figure 24.1. Suppose that the consumption function is C = 400 + 0.5Yd and taxes are $200 billion, at equilibrium the value of injections are
A. $700 billion. B. $650 billion. C. $500 billion. D. $350 billion.