Which of the following attitudes will be held by a typical firm in a typical cartel?
A. If I alone cheat, I’m better off; if everyone cheats, I’m worse off.
B. I can never do better for myself than by following agreed-upon cartel policies.
C. If everyone cheats, I’m better off and so is everyone else in the cartel.
D. If I suspect others are planning to cheat, I’ll do best for myself by deciding not to cheat.
Answer: A
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An example of screening job applicants is
a. listing years of education on résumés b. providing college transcripts c. sending in letters of recommendation d. dressing in a suit for interviews e. checking résumés for spelling and typographical errors
Which of the following is evidence of an ineffective cartel?
a. Output changes are dictated by changes in demand. b. Price changes are dictated by changes in demand. c. Members do not agree on output quotas. d. All of these.