In a cartel, participating members can cheat by
A) letting more entrants join the cartel.
B) leaving the industry.
C) producing a lower production level than the cartel quota.
D) charging a slightly lower price and raising production.
Answer: D
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Which of the following statements correctly highlights the difference between microeconomics and macroeconomics?
A) Microeconomics is descriptive, whereas macroeconomics is advisory. B) Microeconomics primarily deals with positive analysis, whereas macroeconomics primarily deals with normative analysis. C) Microeconomics deals with a small part of the economy, whereas macroeconomics deals with aggregate economic performance. D) Microeconomics describes what economic agents actually do, whereas macroeconomics describes what economic agents ought to do.
When a country operates with a currency board, the central bank's sole objective is to:
A. maintain the exchange rate. B. maintain the domestic interest rate. C. maintain the target inflation rate. D. focus on domestic monetary policy.
A disadvantage associated with in-kind transfers to reduce poverty is that they
a. alter peoples' incentives, whereas a negative income tax does not alter peoples' incentives. b. do not allow poor families to make purchases based on their preferences. c. can only be distributed by the federal government. d. cannot restrict the group of recipients and some middle-class families may benefit from them.
Read Application 14.1 carefully. The United States compares very unfavorably to Japan in life expectancy. In the United? States, average life expectancy at birth is less than 79? years; in? Japan, life expectancy is almost 83 years.? However, the United States spends? 250% more on health care per person than Japan does. Are these numbers evidence of the superior? cost-effectiveness of the Japanese health care? system?
A. ?Yes, if the Japanese live longer and spend less on health? care, it must have a more? cost-effective health care system. B. ?Yes, the Japanese make better behavioral? choices, which implies a? better, more? cost-effective health care system. C. ?No, the U.S. obesity rate is higher than? Japan's, which can drive up health care costs and drag down life expectancy. D. ?Uncertain, as more information is required to assess the? cost-effectiveness of? Japan's health care system.