Which one of the following statements is NOT true?
A. A firm that chooses to cheat on a price-fixing scheme should consider the short-term gain in profits from cheating versus the long-term loss in profits from being punished.
B. The duopoly-pricing strategy leads to negative economic profits.
C. Cartels may break down because of the incentive to cheat.
D. Price leadership arrangements are an implicit price-fixing scheme.
Answer: B
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Which of the following statements is FALSE?
A) A consumer has only one indifference curve. B) A consumer possesses a preference map. C) An indifference curve is a curve that shows the combination of goods among which a consumer is indifferent. D) The marginal rate of substitution is the rate at which a consumer will give up good y to get more of good x and remain on the same indifference curve.
If the government pays a per-unit subsidy to the producer of a service, we would expect to see a(n) I. increase in the quantity demanded. II. decrease in the out-of-pocket price paid by consumers. III
increase in the quantity supplied by producers. A) I only B) both I and II only C) both II and III only D) I, II, and III
"Trade restrictions such as tariffs and quotas are like a blockade that a nation imposes on its own people." Is this statement true?
What will be an ideal response?
Other things equal, demand-pull inflation results in output ________ and the price level ________.
A. increasing; increasing B. decreasing; decreasing C. increasing; decreasing D. decreasing; increasing