Refer to the figure above. If A forms a customs union with C, the value of trade diversion will be
A) $0.
B) $10,000.
C) $20,000.
D) $40,000.
A
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Refer to Table 14-8. If the two firms collude, is there an incentive for either to cheat on the collusion agreement?
A) Yes, but only Brawny Juice is in a position to gain by cheating. B) Yes, but only Power Fuel is in a position to gain by cheating. C) Yes, either firm can gain if it, alone, cheats. D) No, neither firm can gain by cheating.
Premiums based on experience ratings
a. are uniform across age groups. b. are based on the loss experience of the insured. c. vary depending on the income of the insured. d. are illegal in most states in the U.S. e. are only used in property-casualty insurance underwriting.
Along the upward-sloping segment of the aggregate supply curve,
a. when real GDP increases, the price level rises b. when real GDP increases, the price level does not change c. when real GDP decreases, the price level rises d. when real GDP increases, the price level falls e. no relationship exists between changes in real GDP and changes in the price level
Zachary notices that every time he washes his car, it rains the next day. He concludes that washing his car causes the next day's rain. Zachary is
A. very probably correct in his conclusion that washing his car causes the next day's rain to fall. B. likely correct that there is causation, but the causation is more likely running in the opposite direction in that the upcoming rain was responsible for Zachary's decision to wash his car. C. definitely confusing correlation with causation. D. probably misguided in that there is no apparent correlation or causation in this situation.