A Cartel Is a Group of Firms That Attempts to

question 41

Multiple Choice

A cartel is a group of firms that attempts to

• A) maximize joint revenue.
• B) maximize joint profit.
• C) behave independently.
• D) increase consumer surplus.

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Definitions:

Keynesians

Supporters of the economic theories established by John Maynard Keynes, focusing on total spending in the economy and its effects on output and inflation.

Monetarism

A school of economic thought that emphasizes the role of governments in controlling the amount of money in circulation.

Classical Economics

A school of economic thought that emphasizes the role of free markets in regulating economic activity, and the importance of limiting government intervention.

Velocity of Circulation

The rate at which money is exchanged in an economy, representing the number of times a unit of currency is used to purchase goods and services within a given time period.