It is easier to sustain tacit collusion in an infinitely repeated game if:
A. the present value of cheating is lower than collusion and the interest rate is higher.
B. there are many players.
C. the present value of cheating is lower than collusion.
D. the interest rate is higher.
Answer: C
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Which of the following items is not one of the key functions of prices in the market system?
A) coordination B) measuring desire C) profit D) measuring scarcity
Refer to Figure 2-13. What is the opportunity cost of producing 1 ton of coconuts in Guatemala?
A) 1/2 of a ton of pineapples B) 1 1/3 tons of pineapples C) 2 tons of pineapples D) 90 tons of pineapples
While it can be hard to measure, when it comes to education, _______________ around the world.
a. the psychic cost is high b. the level of suspicion is increasing c. the social rate of return is positive d. the purely private benefits outweigh the social benefits
A change in tastes for U.S. produced goods will
A. shift both the aggregate demand curve and the long-run aggregate supply curve. B. shift the long-run aggregate supply curve. C. shift the aggregate demand curve. D. shift the short-run aggregate supply curve.