Each member of a cartel
a. faces a temptation to cheat on the agreement because lowering its price slightly below the established price will usually increase the firm's sales and profit
b. faces a temptation to cheat on the agreement because raising its price slightly above the established price will usually increase the firm's sales and profit
c. has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually have no impact on the firm's sales and profit
d. has no temptation to cheat on the agreement because raising its price slightly above the established price will usually decrease the firm's sales and profit
e. has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually lower the firm's sales and profit
A
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Alexis de Tocqueville observed in his Democracy in America: "There is no country in which everything can be provided for by the laws, or in which political institutions can prove a substitute for
A) common sense and morality." B) economic development." C) police and prisons." D) supply and demand." E) the private pursuit of private interests."
Which of the following are theories of the BOT?
A) monetary approach B) absorption approach C) elasticities approach D) Both B and C
In order to avoid the free-rider problem, which of the following goods is best provided by the government and paid for with tax dollars?
a. automobiles b. lighthouses c. bread d. prescription drugs e. windows
The accompanying graph depicts demand. 
The slope of the demand curve (ignoring the negative sign) is:
A. 1. B. 1.5. C. 0.5. D. 2.