The Main Problem with Pools Was That

question 12

Multiple Choice

The main problem with pools was that

• A) too often members sued each other for violation of the agreement creating the pool.
• B) they did not increase profits.
• C) the Interstate Commerce Act made them illegal precisely when they were most important.
• D) there was no legal way to enforce the "gentlemen's agreement" that created the pool.

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Definitions:

Short Run

A period in economics where at least one factor of production is fixed, limiting the ability to increase output.

Aggregate Demand

Aggregate demand is the total demand for all goods and services within an economy at a given overall price level and within a given time period.

Aggregate Supply

The sum total of products and services that corporate entities in an economic environment plan to market over a fixed period.

Expected Price Level

The anticipated average price of goods and services in the economy over a future period.