When oligopolists join together in a cartel, they
a. have chosen to ignore interdependence.
b. have admitted that their behavior is interdependent.
c. are planning to violate the law of supply and demand.
d. are trying to behave like perfect competitors.
b
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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
Suppose GDP is $10 billion, consumption expenditure is $7 billion, investment is $2 billion, and government expenditure on goods and services is $2 billion. Net exports of goods and services must be
A) $1 billion. B) -$2 billion. C) -$1 billion. D) $2 billion. E) $10 billion.
Many car owners and car dealers describe their different cars for sale in the local newspapers and list their asking price. Many people shopping for a used car consider the different choices listed in the paper
The market for used cars could be described as A) relatively competitive. B) perfectly competitive. C) non-competitive. D) having high transaction costs.
Suppose demand for a good is QD = 100 - P and supply is QS = -20 + P. What is the equilibrium price?
a. 20 b. 40 c. 60 d. 80