It is easier for firms to form and maintain a cartel when:
a. there are cost differences among the industry's firms.
b. there are more number of firms in the industry.
c. there are greater barriers to entry.
d. the goods supplied are varied.
c
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Under oligopoly, collusive practices to fix prices are more likely to take place if
a. market demand is highly elastic. b. market demand is highly inelastic. c. there are a large number of firms in the industry. d. both market demand is highly inelastic and there are a large number of firms in the industry.
The Federal Deposit Insurance Corporation (FDIC)
a. insures all demand deposit accounts up to $10 million in banks choosing FDIC protection b. was created as a government-owned corporation following the creation of the World Bank and the International Monetary Fund after World War II c. provides insurance to all participating corporations and government agencies such as the Federal Reserve d. creates monetary policy in conjunction with the Federal Reserve Board e. was created to reduce the risk of bank failure and thereby insuring the stability of the banking system
Based on the figure, the economy is initially in long-run equilibrium at point A. If there is a favorable supply shock that increases potential output and shifts the long-run aggregate supply curve from LRAS to LRAS', then there is initially ________ gap and the short-run aggregate supply curve will ________. 
A. a recessionary; eventually shift to SRAS' B. an expansionary; eventually shift to SRAS' C. an expansionary: eventually shift to SRAS" D. a recessionary; eventually shift to SRAS"
Michael can produce the following combinations of X and Y: 10X and 10Y, 5X and 15Y, and 0X and 20Y. Vernon can produce the following combinations of X and Y: 100X and 20Y, 50X and 30Y, or 0X and 40Y. It follows that
A) Michael has the comparative advantage in producing X and Vernon has the comparative advantage in producing Y. B) Michael has the comparative advantage in producing Y and Vernon has the comparative advantage in producing X. C) Neither Michael nor Vernon has a comparative advantage in producing X. D) Neither Michael nor Vernon has a comparative advantage in producing Y. E) There is not enough information to answer the question.