A typical firm in a cartel will hold which of the following attitudes?
A) If everyone cheats, I'm better off, and so is everyone in the cartel.
B) If I alone cheat, I'm better off; if everyone cheats, I'm worse off.
C) I can never do better for myself than following agreed-upon cartel rules.
D) If I suspect others are planning to cheat, I'll do best for myself by deciding not to cheat.
B
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
The loss in social surplus that occurs when the economy produces at an inefficient quantity is called
a. efficiency. b. consumer surplus. c. social surplus. d. deadweight loss.
Which of the following is NOT one of the functions of money?
A. A factor of production B. A medium of exchange C. A store of value D. A standard of value
A technological change that positively affects business expectations will _____
Fill in the blank(s) with the appropriate word(s).