Because cartel firms produce a quantity that ________ maximize their own firm's profits, there is an incentive to ________.
A) does; produce more than the agreed upon amount
B) does not; produce less than the agreed upon amount
C) does; act in self-interest
D) does not; act in self-interest
D) does not; act in self-interest
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Forecasts by the Congressional Budget Office show spending on Social Security, Medicare,
and Medicaid rising from 10.1 percent of GDP in 2015 to ________ percent of GDP in 2090, and by 2090 the federal government will be spending, as a fraction of GDP, ________ on these three programs as it currently spends on all programs combined. A) 16.2 percent; half as much B) 19.8 percent; half as much C) 19.8 percent; nearly as much D) 16.2 percent; nearly as much
In the Baumol model, the total quantity sold will usually be larger than
A) if perfect competition prevailed. B) if total costs were minimized. C) if profit were maximized. D) if companies were interdependent.
In the prisoner's dilemma game:
A. if players can communicate in advance, they will always cooperate. B. if players can communicate in advance, they may still not cooperate. C. will always choose to cooperate. D. will only cooperate if they are trustworthy.
Suppose you observe that with a given supply curve, the Peruvian demand for Argentinean pesos steadily decreases. This will most likely mean:
a. the supply of Peruvian nuevos soles has increased on the foreign exchange market. b. the Argentinean peso will appreciate in value relative to the Peruvian nuevo sol. c. the Argentinean peso will depreciate in value relative to the Peruvian nuevo sol. d. the Peruvian demand for Argentinean goods has increased. e. the supply of Argentinean pesos has increased on the foreign exchange market.