Cartels are
A. difficult to organize.
B. difficult to preserve.
C. especially unlikely to succeed if the members sell many varied products.
D. All of the responses are correct.
Answer: D
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A negative income elasticity of demand indicates that the product
A. is a complementary good. B. is an inferior good. C. is a normal good. D. is a substitute good.
Refer to Figure 11.5. An increase in the marginal propensity to import is best illustrated by diagram
A) A. B) B. C) C. D) D.
The _________ measures overall progress in 174 countries, based on life expectancy, adult literacy rate, education level and GDP per capita
a. United Nations Well-Being Ratio b. Human Development Index (HDI) c. De Facto Index d. International Impact Survey
The market for bagels contains two firms: BagelWorld (BW) and Bagels'R'Us (BRU). The owners of the two firms decide to fix the price of bagels. The table below shows how each firm's profit (in dollars) depends on whether they abide by the agreement or cheat on the agreement. 
Is this game a prisoner's dilemma?
A. Yes, because if both firms played their dominant strategy, they each would earn a higher payoff than when they both play their dominated strategy. B. Yes, because if both firms played their dominated strategy, they each would earn a higher payoff than when they both play their dominant strategy. C. No, because cheating yields the highest payoff for both firms D. No, because neither firm has a dominant strategy