If AS increases at a faster rate than AD, the result will be
a. demand-side inflation.
b. supply-side inflation.
c. falling prices.
d. stable prices.
c
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A collusive agreement to form a cartel is difficult to maintain because
A) each member firm can increase its own profits by cutting its price and selling more. B) forming a cartel is legal but frowned upon throughout the world. C) supply will decrease because of the high cartel price. D) demanders will rebel once they realize a cartel has been formed. E) each firm can increase its profit if it decreases its production even more than the decrease set by the cartel.
Speculation would involve using forward contracts and options to reduce the exchange rate risk on future foreign exchange transactions
Indicate whether the statement is true or false
If Joe earns $80,000 per year and pays $20,000 in taxes, while Moe earns $100,000 and pays $22,000 in taxes, their tax system would best be described as:
a. progressive. b. proportional. c. regressive. d. discretionary. e. lump-sum.
A firm can produce two products with the cost function C(Q1, Q2) = 10 + 5Q1 + 5Q2 ? 0.2Q1Q2. The firm enjoys:
A. economies of scale in the two products separately. B. economies of scale in the two products separately and cost complementarity. C. cost complementarity and economies of scope. D. economies of scope only.