A coalition of firms who agree to restrict output for the purpose of earning an economic profit is called a(n):
A. pure monopoly.
B. duopoly.
C. cartel.
D. oligopoly.
Answer: C
You might also like to view...
Refer to Figure 17-2. Suppose the economy is at point A. The Fed uses expansionary monetary policy to lower the unemployment rate permanently below the level associated with A. Which of the following will occur?
A) Inflation will accelerate in the long run. B) Unemployment will accelerate in the long run. C) Inflationary expectations will decline. D) Unemployment will rise above the natural rate.
How do mainstream economists explain the cause of the financial crisis that led to the severe recession of 2007–2008?
What will be an ideal response?
Ronald Coase's analysis of externalities emphasizes the importance of:
a. command-and-control regulations. b. effluent taxes. c. property rights. d. international sovereignty.
Which of the following could explain an increase in labor supply to a particular labor market?
a. a reduced preference for this type of work b. a decrease in the size of the population c. an increase in the number of firms in the market d. a rightward shift of the marginal revenue product curve for labor at a typical firm e. a reduction in wage rates for similar types of work