Suppose a shortage for good X exists. Given this information, we know that
A) the price of good X will tend to rise toward the equilibrium level.
B) the price of good X will tend to fall toward the equilibrium level.
C) a government price floor should be imposed above the current price so that the market can work more effectively.
D) a government price ceiling should be imposed above the current price so that the market can work more effectively.
A
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In economics, physical capital includes
A) money. B) bank accounts. C) machinery. D) shares of stock.
If a member of a cartel is the first to alert authorities to the cartel behavior, which of the following will occur to this member firm?
A) The firm will face significant fines. B) The firm's most senior managers will face jail time. C) The firm will not be considered whistle -blowers. D) The firm will not be penalized.