Which of the following is NOT a condition that helps enforce a cartel agreement?

When shortages or surpluses persist for any extended period of time, they

A) are a consequence of failure to allow prices to perform their rationing function. B) are evidence of an underlying imbalance between demand and supply. C) are evidence of goods being scarce. D) indicate that there is no price that will clear the market in the case of some goods.

When economists say that an interest rate is compounding, they imply that:

A) the rate of interest decreases every year. B) the rate of interest increases every year. C) interest is being earned on interest. D) double the interest payment is received every two years.