Which of the following conditions would increase the likelihood of successful collusion among American automobile producers?
a. vigorous enforcement of antitrust laws
b. strong quality competition that makes it difficult to monitor price cuts by rival firms
c. imposition of tariffs or quotas on imported automobiles
d. The market demand for automobiles fluctuates substantially.
C
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Changes in total factor productivity are plausible causes of business cycles because
A) of the welfare theorems. B) the U.S. government is following supply-side economic policy. C) the model matches many stylized facts. D) prices are countercyclical.
Total market demand can be calculated by
A) horizontally summing individual demand curves at each and every price level. B) vertically summing individual demand curves at each and every income level. C) adding up the largest quantity demanded by each individual. D) looking at the changes in the products' popularity.
Assume the price of Nikes decreases. As a result, consumers increase the quantity of Nikes purchased each year and purchase fewer Reeboks. This is an example of the:
a. substitution effect. b. income effect. c. utility effect. d. consumption effect.
The greater the marginal cost and the lower the marginal benefit of reducing greenhouse gases, other things constant, the cleaner the air
Indicate whether the statement is true or false