Which of the Following Statements Is TRUE

question 213

Multiple Choice

Which of the following statements is TRUE?

• A) It is easier to establish a cartel for a manufactured good than for a natural resource.
• B) Cartels are more successful when there are many substitutes for the cartel's good.
• C) The high prices charged by a cartel might lead to new firms entering the industry, reducing the cartel's market power.
• D) OPEC's high oil prices encourage countries like Mexico, Great Britain, and the Netherlands to cut back on oil production.

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Definitions:

Bias

A tendency to lean in a certain direction, often to the detriment of an open mind; in statistics, a systematic error introduced into sampling or testing.

Bipolar Disorder

A mood disorder in which the person alternates between the hopelessness and lethargy of depression and the overexcited state of mania. Formerly called manic-depressive disorder.

Anxiety Disorder

A category of mental health disorders characterized by significant and persistent fear, anxiety, or avoidance behaviors.

Lethargic Hopelessness

A state characterized by a lack of energy and a pervasive sense of despair or pessimism.