With barriers to the entry of new firms
A) a cartel is guaranteed to earn an economic profit greater than zero.
B) a cartel's members have no incentive to cheat.
C) the cartel will likely earn an economic profit greater than zero.
D) industry supply will expand if the firms form a cartel.
C
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Which of the following would cause an increase in aggregate demand in the short run?
A) an increase in taxes B) an increase in the supply of money C) a decrease in the price level D) a crop failure
The change in the quantity demanded of gas because of increasing gas prices over the last decade:
A. was more elastic than it has been in the last six months. B. was less elastic than it has been in the last six months. C. has been relatively the same over both time periods. D. has become a non-issue for people now that they are used to higher gas prices.
If a country's saving rate declined, then other things the same, in the long run, the country would have lower productivity and lower real GDP per person.
a. true b. false
If you include in your offerings some inferior goods, the demand for these products will increase:
A. when incomes are high. B. during bad economic times. C. during economic booms. D. All of the statements associated with this question are correct.