Which of the following is not true?
a. Collusion is relatively rare, in part because it is illegal in many countries
b. Collusion is relatively rare, even though members find it easy to agree on key decisions.
c. Collusion is relatively rare, in part because members frequently have an incentive to cheat on the cartel.
d. Collusion is harder to maintain when differentiated products are involved, which introduce many ways to undercut a collusive agreement.
b
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Which of the following is a valid reason to consider government regulation?
a. Seeking some social objective that markets do not achieve. b. Fear that capitalism will prove too productive. c. Desire on the part of government to be useful. d. Requests for protection from an industry. e. All of the above.
Expanding the supplies of raw materials, capital equipment, effective labor, and technological knowledge will:
A. Shift outward the production possibilities curve for a nation B. Increase the demand for and decrease the supply of productive resources C. Make a nation less productive because of the need to coordinate the increased quantity of resources D. Lead to increased population growth that will decrease the per capita growth in a nation