Economics 9708 · AS & A Level · Maximum and minimum prices

Maximum and minimum prices — practice question

The diagram illustrates the number of fines ($m) and the total amount of fines ($m) imposed by the US Department of Justice on firms for illegal cartel behaviour from 1980 to 2011. What is the most likely conclusion that can be drawn from the diagram about the US Department of Justice's view of firms' cartel behaviour?

  • AIt believed that cartel behaviour was unimportant before 1980.
  • BIt believed that illegal cartel behaviour was insignificant in 2011.
  • CIt believed that increasing fines was necessary to deter cartel behaviour.
  • DIt believed that the free market can regulate cartel behaviour.

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