A Situation in Which Each Firm Acts in Order to Raise

question 56

True/False

A situation in which each firm acts in order to raise the profits of its rivals (and of itself) without any formal agreement between firms is known as tacit collusion.False

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Definitions:

Employee Polygraph Protection Act

A federal law that prohibits most private employers from using lie detector tests, either for pre-employment screening or during the course of employment.

Lie Detector Test

A psychological examination that measures physiological responses to determine the truthfulness of an individual's statements, commonly known as a polygraph test.

State Insurance Fund

A government-established fund designed to provide insurance, such as workers' compensation, to employers within the state, often serving as insurer of last resort.

Workers' Compensation Statute

Legislation that provides financial and medical benefits to employees who are injured or become ill as a direct result of their job.