What is the incentive for a firm to join a cartel?
A) to be able to earn profits in the long run but not in the short run
B) to be able to earn larger profits than if it was not part of the cartel
C) to completely insulate itself from competition
D) to produce a larger amount of output than if it was not part of the cartel
Answer: B
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Positive economics is a(n):
a. reflection of a country's values. b. judgment of the correctness of an economic outcome. c. statement of fact. d. analysis of what ought to be. e. analysis of all the good market outcomes.
Public goods are not free. If we need a fighter aircraft, we are obliged to give up something else that could have been provided with the resources used to make the aircraft. The opportunity cost of providing aircraft can be represented in the
a. paradox of thrift b. aggregate expenditure curve c. marginal propensity to consume d. innovation cycle e. production possibilities curve
Average GDP per person is
A. A measure of the economic growth rate of a country. B. Also known as per capita GDP. C. Also known as GDP. D. The value of the factors of production used to produce output in a country.
Refer to the information provided in Figure 28.8 below to answer the question(s) that follow.
Figure 28.8Refer to Figure 28.8. Along SRPC1, expected inflation equals
A. 6%. B. 5%. C. 4%. D. cannot be determined from the figure.