A major reason that firms form a cartel is to:
A. Reduce the elasticity of demand for the product
B. Enlarge the market share for each producer
C. Minimize the costs of production
D. Maximize joint profits
D. Maximize joint profits
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If the marginal external cost of building a children's playground equals zero, then the i. marginal private cost equals the marginal social cost. ii. marginal social cost equals zero. iii. marginal private cost equals zero
A) i only B) ii only C) iii only D) ii and iii E) i and ii
Between 1968 and 2008 the percentage share of income that went to the top quintile
A. fell substantially. B. fell somewhat. C. stayed about the same. D. rose substantially.
A flat tax
A. Includes multiple tax brackets. B. Encourages economic activity through deductions and credits. C. Is a single-rate tax system. D. Includes many tax loopholes.
If the nominal interest rate is 5 percent and the expected inflation rate is 2.1 percent, the real interest rate is
A. 1.9 percent. B. 7.1 percent. C. 4.1 percent. D. 2.9 percent. E. 0.29 percent.