Cheating on a collusive agreement is more likely when
a. a price floor is in effect
b. firms are located in the same state
c. it is easy to observe the other firms' prices
d. there is a small number of firms
e. market demand is unstable
E
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Voluntary programs, direct controls, and emissions taxes are all equally effective ways of controlling pollution.
Answer the following statement true (T) or false (F)
Explain the differences between a recessionary gap and an inflationary gap.
What will be an ideal response?
Refer to the figure. A weaker economy, characterized by higher unemployment rates, will:
A. reduce MB and increase MC, lowering the optimal quantity of immigrants.
B. increase MB and reduce MC, raising the optimal quantity of immigrants.
C. increase both MB and MC, and the effect on the optimal quantity is uncertain.
D. reduce both MB and MC, and the effect on the optimal quantity is uncertain.
A principal feature of a command economy is that