Individual members of a cartel have an incentive to ____ the cartel agreement because pursuit of ____ will maximize individual profit
a. adhere to; self-interest
b. cheat on; collective interest
c. cheat on; self-interest
d. adhere to; collective interest
c
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Central banks intervene directly in foreign exchange markets by buying and selling ________
A) exports and imports B) foreign currencies C) U.S. government debt D) discount loans
On the graph above, unplanned inventory investment is negative at point ________
A) A B) B C) G D) H E) none of the above
Capital rationing
A) exists when a company sets an arbitrary limit on the amount of investment it is willing to undertake, so that not all projects with an NPV higher than the cost of capital will be accepted. B) generally does not permit a company to achieve maximum value. C) seems to occur quite frequently among corporations. D) All of the above
In the short run, a monopolist:
a. always earns an economic profit. b. never earns an economic profit. c. never earns an accounting profit. d. None of the above are correct.