Suppose an oil cartel has an agreement to restrict members' production in order to maintain a price of $30 per barrel. A single cartel member may want to cheat and exceed its quota so that it can:
a. reduce its costs.
b. charge higher prices.
c. make demand more inelastic.
d. earn a bigger profit.
d
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Moving from left to right, a U-shaped curve starts with a
A) negative slope, reaches a minimum, then ends with a positive slope. B) negative slope, reaches a minimum, then ends with a negative slope. C) positive slope, reaches a maximum, then ends with a negative slope. D) negative slope, reaches a maximum, then ends with a positive slope. E) positive slope, reaches a minimum, then ends with a negative slope.
Which of the following schools of thought believes that wages and prices are rigid in the short run?
a. Keynesians and new Keynesians b. Only monetarists c. Only new classical economists d. Monetarists and new classical economists e. Monetarists and Keynesians