Why has the cartel in diary farming not been broken up?
a. Organized crime is used to enforce a dairy compact.
b. The dairy industry is exempt from anti-trust laws.
c. Consumers do not mind paying higher prices for milk.
d. Economic studies indicate that to do so would decrease efficiency.
b. The dairy industry is exempt from anti-trust laws.
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Adam Smith’s book, one of the first systematic treatments of economics, was entitled
A. The Plan of the Ages. B. The General Theory of Money, Taxes, and Income. C. The Wealth of Nations. D. Principles of Economics. E. Concepts in Moral Philosophy.
A nation has a comparative advantage in a good when it has a
A) higher opportunity cost of producing the good. B) tariff in place protecting the producers of the good. C) higher absolute cost of producing the good. D) lower absolute cost of producing the good. E) lower opportunity cost of producing the good.
If the CPI is 120 in 1996 and 180 in 2002, then between 1996 and 2002, prices have increased by
A) 180%. B) 80%. C) 60%. D) 50%.
When perfectly competitive firms are earning zero accounting profits, a. we would expect entry into the industry
b. we would expect stability in the industry, since it is in long run equilibrium. c. we would expect exit from the industry. d. we would expect none of the above.