Firms in a cartel have an incentive to cheat on the cartel agreement because they suspect the other firms are cheating as well.
Answer the following statement true (T) or false (F)
False
Rationale: The incentive to cheat is there even if firms believe all other firms abide by the cartel agreement.
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If two families are identical with respect to size, income, general expenses, etc., and are taxed equally, we say that there is
a. horizontal equity. b. vertical equity. c. observance of the ability-to-pay principle. d. intergenerational equity.
________ legislation generates concentrated benefits but imposes widespread costs, while ________ legislation generates concentrated benefits for one group, and imposes concentrated costs upon another group
a. Public interest; special interest b. Special interest; median voter c. Rationally ignorant; public interest d. Special interest; competing-interest