A newspaper reports that the average price of new homes in a certain city had decreased, and the number of new homes sold had also decreased. This situation is probably caused by
A. higher government subsidies to new homebuyers in that city.
B. a rising population in that city.
C. decreasing incomes of people in that city.
D. decreasing costs of construction materials and services in that city.
Answer: C
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If an industry is dominated by three large producers whose revenues represent 30%, 30%, and 30% of the market's total revenues with the remaining two firms each representing 5%, what would be the measure of the Herfindahl-Hirschman Index for this industry?
a. 2,725 b. 2,750 c. 9,975 d. 10,000
The fact that the United States exports Budweiser beer and imports Heineken beer can be explained by:
a. the differences in labor productivity in the U.S. and other countries. b. the differences in factor endowments in the U.S. and its trading partners. c. the world price of Budweiser beer is lower than Heineken beer. d. the fact that production of Budweiser beer in the U.S. is inadequate compared to its demand. e. the preference for foreign brands of beer by a part of the U.S. population.
The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. CPU GHzTotal BenefitMarginal BenefitTotal CostMarginal Costs2.0$1,000 $900 2.5$1,400 $1003.0 $300$1,200 3.5$1,900 $1,500 4.0$2,000 $400 The marginal benefit of upgrading from a 2.0GHz computer to a 2.5GHz computer is:
A. $1,000. B. $1,400. C. $400. D. $100.
Transaction costs are
A) the costs associated with making a transaction that is required by the government. B) not true costs since they are often not paid. C) the costs associated with exchanges in the service area. D) the costs associated with making, reaching and enforcing agreements.