Answer the following statement(s) true (T) or false (F)
1. A country or region’s comparative advantage is based on its natural resources and therefore does not change over time.
2. Because cocaine and stolen identity information are illegal, there are no markets for these items.
3. The market price reflects the value buyers place on a good or service and the cost to society of producing it.
4. Government price controls effectively endow the market price with meaning for buyers and sellers.
1. False
2. False
3. True
4. False
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Which of the following statements is FALSE?
A) Cartels only form among members of an oligopoly. B) A cartel might form if members believe they can increase profits by coordinating activity. C) Members of a cartel produce less output than that produced in a competitive market. D) Cartel members often have an incentive to cheat.
Data on the U.S. income distribution suggest that
a. black-white income differentials have decreased b. black-white income differentials have increased c. the distribution of income among blacks is more uneven than the overall distribution of income d. the distribution of income among blacks is less uneven than the overall distribution of income e. the distribution of income among blacks follows approximately the same pattern as the overall distribution of income