Cartel members have an incentive to cheat because
a. the cartel does not maximize profit
b. the cartel price is the competitive price
c. each member's output quota is more than the output it would produce as a non-cartel member
d. each member's MR is greater than the cartel's MC
e. industry economic profit would be higher under competitive conditions
D
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Last year in Candamica, consumption expenditure was $20 billion, interest, rent, and profit were $2.5 billion, government expenditure on goods and services was $7 billion,
net exports of goods and services was $5 billion, and investment was $2 billion. Hence total expenditure was A) $24.5 billion. B) $34.5 billion. C) $36.5 billion. D) $34 billion. E) undetermined without information about imports.
Demand is inelastic when a price ________ results in total revenue ________
A) rise; decreasing B) fall; increasing C) rise, increasing D) fall, remaining the same
Hughes and Cain (2011) argue that the U.S. regards highly hardworking people and possesses a strong disdain for idle people, especially the rich. These views fuel animosity toward labor unions because unions
(a) threaten the private rights of business owners to utilize profits in those fashions they deem desirable. (b) force business owners to divert profits to conduct research and develop products. (c) prevent the emergence of a leisure class in the U.S. (d) all of the above.
Critics of targeting a zero inflation rate believe that achieving zero inflation is almost impossible and the costs are too high
a. True b. False Indicate whether the statement is true or false