Cartels

question 4

Multiple Choice

Cartels

• A) encourage competition.
• B) attempt to restrict output in order to raise prices.
• C) rely on legally enforceable contracts between cartel participants.
• D) rely on advertising and packaging to increase profits.
• E) All of the above.

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Definitions:

Diversity Of Citizenship

Under the Constitution, a basis for federal district court jurisdiction over a lawsuit between citizens of different states, a foreign country, and citizens of a state or different states or a foreign country and citizens of a state or states. The amount in controversy must be more than $75,000 before a federal court can exercise jurisdiction in such cases.

Federal Law

A body of law created by the federal government of a country, dealing with issues that affect the entire nation.

Treaty

A formal, ratified agreement between two or more sovereign states, usually in written form and governed by international law.

Civil Lawsuit

A court contention among several entities requesting either monetary compensation or a defined fulfillment, rather than facing criminal penalties.