Which of the following statements about cartels is false?
A. Cartels are illegal in the United States.
B. If a cartel is to be successful, it must secure the full support of all its members.
C. Cartels are reluctant to raise or lower their prices.
D. A cartel is a group of firms colluding to control output and maximize group profits.
C. Cartels are reluctant to raise or lower their prices.
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Refer to the above figure. Which panels could represent the situation if the Fed had engaged in open market operations?
A) Panels A and B B) Panels A and C C) Panels B and C D) Panels C and D
In the United States, consumers, businesses, governments, and foreigners participate in both the product and factor markets.
Answer the following statement true (T) or false (F)
The indices that are based on a fixed market basket of goods and services are
A. CPI, PPI and GDP deflator. B. CPI and GDP deflator. C. CPI and PPI. D. PPI and GDP deflator.
Which of the following describes monopolistic competition?
A. homogeneous products B. Advertising plays a key role. C. There is only one seller in the industry. D. All firms are price takers.