The stability of cartel prices is challenged because
A. cartels never exist.
B. though they increase profits, they are vulnerable to those that seek to make more profit by breaking the agreements that generated them.
C. though they increase profits, they are vulnerable to egalitarian interests.
D. they never increase the profitability of their members.
Answer: B
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When the Fed wants to lower the federal funds rate, it ________.
A. increases the reserve requirement B. increases the prime rate C. buys bonds from banks and the public D. increases the discount rate
Which of the following explains why elected representatives will find borrowing to be an attractive method of financing current government programs?
What will be an ideal response?
Autonomous expenditure is spending that is:
A. not sensitive to the level of income in the economy. B. what is spent when income changes in the economy. C. depends on the level of income in the economy. D. that is determined by the government.
A public good
A. Is overproduced by the market. B. Is any good produced by the government. C. Causes government failure. D. Is subject to the free-rider dilemma.