Which of the following attitudes will be held by a typical firm in a typical cartel?
a. If I alone cheat, I'm better off; if everyone cheats, I'm worse off.
b. I can never do better for myself than by following agreed-upon cartel policies.
c. If everyone cheats, I'm better off and so is everyone else in the cartel.
d. If I suspect others are planning to cheat, I'll do best for myself by deciding not to cheat.
a
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The above figure shows a graph of the market for pizzas in a large town. At a price of $7, there will be
A) excess demand. B) excess supply. C) equilibrium. D) zero demand.
If intended investment is $2 billion, and unwanted inventory is $0, then we know that all of the following statements are true except
a. consumption spending is $2 billion b. saving = $2 billion c. actual investment = $2 billion d. the economy is in equilibrium e. national income equals aggregate expenditure
In the fall of 2007, most economists felt that the
a. unemployment was at the natural rate. b. unemployment rate was below the natural rate. c. inflation rate was above the natural rate. d. inflation rate was below the natural rate.
What are the reasons for unequal distribution of income? List at least six reasons.
What will be an ideal response?