If there is a decrease in demand for a product in a purely competitive industry, it results in an industry contraction that will end when the product price is:
A. Greater than its marginal cost
B. Equal to its marginal cost
C. Less than its marginal cost
D. Greater than its average cost
B. Equal to its marginal cost
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The supply of loanable funds curve has a ________ slope and the demand for loanable funds curve has a ________ slope
A) negative; positive B) positive; negative C) negative; negative D) positive; positive E) vertical; horizontal
The Gini ratio is a measure of
A) income inequality. B) wealth distribution. C) income distribution. D) income as compared to wealth.
If the MPC is 0.80, and if the goal is to increase real GDP by $200 million, then by how much would government spending have to change to generate this increase in real GDP?
a. $240 million. b. $200 million. c. $180 million. d. $40 million.
What would the Herfindahl-Hirschman Index equal for an industry consisting of six firms with market shares of 40 percent, 30 percent, 20 percent, 5 percent, 3 percent, and 2 percent?
A. 0.95 B. 2.934 C. 2,938 D. 10,000