A cartel is:
a. a group of oligopolists who try to behave like a single monopolist and split the benefits among themselves.
b. a government-approved organization for the exchange of technical information among firms
c. an industry trade group formed to lobby political leaders
d. a regulated industry manufacturers association that is officially permitted to set the price of its product above long-run average total cost.
a
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Which of the following is a flow in the circular flow model?
A) the flow of profit and the flow of revenue B) the flow of income earned by firms and the flow of expenditures earned by households C) the flow of revenue received by firms and the flow of payments to resource owners D) the flow of goods and services from households to firms
Although he is very poor, Al plays the million-dollar lottery everyday because he is certain that one day he will win. Al makes this calculation based upon
A) the frequency of past outcomes. B) subjective probability. C) knowledge of all possible outcomes. D) tossing a coin.
The three principal factors that explain why the aggregate demand curve is downward sloping are
a. real wealth holdings, the interest rate, and international trade b. the price level, the interest rate, and economic growth c. the interest rate, the economic growth, and international trade d. cost-pull inflation, demand-pull inflation, and real wealth holdings e. the phases of the business cycle: recession, downturn, and recovery
The most effective fiscal stimulus will
a. create jobs, even if the employment is on unproductive projects. b. substantially change the composition of aggregate demand. c. encourage interest groups to lobby more intensely and make larger political contributions. d. direct the economy to full employment and direct resources toward economically productive projects.