Cartel members have an incentive to cheat on cartel agreements because
a. the cartel cannot maximize profits.
b. the cartel price is the competitive price.
c. the demand curve for the firm is more elastic than the cartel's demand curve.
d. the industry profit would be higher under competitive conditions.
C
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If the price of bonds rises,
a. the Fed will decrease the money supply b. the Fed will increase the money supply c. the interest rate will rise d. the interest rate will fall e. inflation must be accelerating
According to Keynes, investment demand depends less on interest rates than on the
a. availability of savings b. flexibility of wages and prices c. level of disposable income d. competitiveness of labor markets e. expectations of a continuing robust economy
Jose has one evening in which to prepare for two exams and can employ one of two possible strategies: The opportunity cost of receiving a 93 on the economics exam is __________ points on the statistics exam.
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Which statement best summarizes the invisible hand theorem?
A. Government policies direct people's selfish desires (tempered by social and economic forces) to the benefit of society. B. Markets direct people's selfish desires (tempered by political and social forces) to the common good. C. Cultural norms direct people's selfish desires (tempered by political and economic forces) to the common good. D. Social, political, and economic forces act against people's selfish desires to promote the common good.