The term underground economy refers to

The term underground economy refers to
 a. the coal-mining industry
  b. all ore mining
  c. the subway system
  d. purely illegal activity
  e. market activity not reported to the government

QUESTION 2

Which of the following is an example of an actual cartel?
 a. the three largest cereal producers in the United States
  b. General Motors, Ford, and Chrysler
  c. the Organization of Petroleum Exporting Countries (OPEC)
  d. the three major U.S. cigarette manufacturers
  e. U.S. television networks -- ABC, NBC, CBS, and Fox

QUESTION 3

A rise in marginal income tax rates would likely increase the size of the underground economy.
 a. True
  b. False

QUESTION 4

The various models of oligopoly explain observed behavior in different industries, but none is satisfactory as a general theory of oligopoly.
 a. True
  b. False

QUESTION 5

Activities that interest groups undertake to secure special favors from government is called rent seeking.
 a. True
  b. False

QUESTION 6

A brand name may contribute to oligopolists' economic profit by
 a. shifting the demand curve leftward
  b. shifting the supply curve leftward
  c. overcoming economies of scale
  d. acting as a barrier to entry
  e. reducing advertising costs

QUESTION 7

Special interest legislation generally leads to an increase in social welfare.
 a. True
  b. False

QUESTION 8

Oligopolists often sacrifice economies of scale as they expand product variety.
 a. True
  b. False