Cheating in a cartel is more likely to occur if the industry
A) has a large number of firms.
B) has homogeneous products.
C) has easily observable prices.
D) has little ability to affect market prices.
Answer: A
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"As the saying goes, the only sure things in life are death and taxes. This saying points out the result that everything having to do with taxes is an automatic fiscal policy." Is the preceding analysis correct or incorrect? Explain your answer
What will be an ideal response?
The unemployment rate is equal to the natural unemployment rate at
A) some point within the interior of the physical PPF but beyond the institutional PPF. B) some point within the interior of the physical PPF, but we cannot locate it with more accuracy. C) some point within the interior of the institutional PPF, but we cannot locate it with more accuracy. D) every point on the institutional PPF. E) every point on the physical PPF.
Speculation during periods of inflation can result in:
A. People buying resources for resale later rather than using the resources for current production. B. A movement inside the production-possibilities curve. C. People buying gold, silver, jewelry, etc., instead of capital for production. D. People saving less of their disposable income. E. All of the above.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C