Cartels frequently break down in the long run because
a. they are illegal
b. tacit collusion is illegal
c. contracts and agreements are legally binding
d. cooperative behavior usually lowers profits for the entire industry
e. members have an incentive to increase output
E
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A decrease in ________ can put your job at risk if aggregate expenditures fall
A) consumer confidence B) the length of a business cycle C) the natural rate of unemployment D) the inflation rate
The experience of sub-Saharan Africa, as compared to that of "Other Asia" (not including the HPAEs) supports the argument that
A) high rates of protection tend to harm economic growth. B) the poorer is the country the easier it is for it to "catch up" economically. C) low rates of protection tend to promote economic growth. D) free trade always best stimulates a developing country's economy. E) neither trade liberalization nor import substitution is a foolproof strategy for economic development.