Under the cartel, the individual firm's economic profit is (assuming that it wants to cheat on its quota) 
Figure 42.2
A. zero.
B. the smaller of the dashed-line boxes.
C. between the size of the two dashed-line boxes.
D. the larger of the dashed-line boxes.
Answer: D
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Describe briefly five major characteristics or problems of developing countries' agricultural sector. Make reference to specific countries or regions where you can
What will be an ideal response?
In the Keynesian model, and increase in government spending financed with an increase in taxes will
a. move an economy left along its Phillips curve. b. shift the Phillips curve to the up. c. move an economy right along its Phillips curve. d. shift the Phillips curve down. e. not affect the Phillips curve.
The table above gives GDP and expenditures for an economy with no international trade and with lump-sum taxes. All the numbers are billions of dollars. C is consumption expenditure, I is investment, and G is government purchases. If the government decides to increase its purchases by an additional $450 billion, equilibrium GDP increases to
A) $7,250 billion. B) $10,450 billion. C) $5,450 billion. D) $7,450 billion.
At a Chicago Bulls game 20,000 tickets were sold at $30 apiece. The game was sold out and some people did not get tickets. This suggests that the selling price:
A. was above equilibrium. B. was below equilibrium. C. was at equilibrium. D. could not have been any higher.