When does an oligopoly market result in a cartel? What conditions must be present for the cartel to be successful?
What will be an ideal response?
An oligopoly becomes a cartel when the firms in the market explicitly agree on production levels and prices. To work, demand for the product must be inelastic, and cartel members must follow the cartel rules.
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If inflation turns out to be higher than was anticipated, debtors are helped because
A) the real present value of their payments increases. B) the real present value of their payments decreases. C) the nominal present value of their payments increases. D) the nominal present value of their payments decreases.
The Secretary of Labor states that wage rates in the country have risen by 2 percent this past year. The head of a local labor union states that wage gains should have been higher. The Secretary's statement is a(n) ____ economic statement, and the labor head's statement is a(n) ____ economic statement
a. normative; normative b. normative; positive c. positive; normative d. positive; positive e. proper; improper
A firm has the choice of offering "dirty" jobs that are likely to cause severe health problems for its workers or of offering "clean" jobs by installing safety equipment at a cost of $5 per hour per employee that will substantially reduce the chances of health problems. The firm will
A. install the safety equipment if workers can ascertain whether they are working a dirty or a clean job. B. never willingly choose to install the costly safety equipment. C. willingly install the safety equipment if workers are willing to be paid $7 per hour less in a clean job than in a dirty job. D. install the safety equipment if workers are willing to be paid $3 per hour less in a clean job than in a dirty job. E. never install the safety equipment without a government subsidy to do so.
From 1999 to 2007, U.S. imports from Mexico grew each year by approximately
A. 15%. B. 75%. C. 5%. D. 22%.