Which of the following is LEAST likely to be an outcome of a cartel as compared to the situation before the cartel was formed?
A. Cartel members make fewer profits.
B. Cartel members do not compete with each other in pricing decisions.
C. Cartel members reduce production.
D. Cartel members charge higher prices.
Answer: A
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The duration of unemployment ________ during a recession.
A. remains constant. B. varies between 5 and 14 weeks. C. increases. D. decreases.
In the short-run, an increase in the average price level in the economy will cause:
a. demand for a good to increase but total production to decline. b. profits to rise and thus, total production to increase. c. interest rates to fall and thus, total production to decline. d. input costs to fall and thus, total production to rise. e. input costs to fall and thus, total production to decline.
Discrimination occurs when the marketplace offers different opportunities to similar individuals who differ only by
a. race. b. level of education. c. attitudes toward risk. d. All of the above are forms of discrimination.
Suppose a company trying to increase profits, markets its laptops at a price that is higher than the equilibrium price of laptops in the market. Which of the following is likely to happen as a consequence?
a. The equilibrium price of laptops will increase to the level charged by this brand. b. There will be an excess supply of this particular brand of laptops in the market. c. There will be an excess demand for this particular brand of laptops in the market. d. The equilibrium price of laptops will decrease.