Which of the following events would increase the four-firm concentration ratio in a milk industry with six firms?
A. The two largest milk producers merge.
B. The largest milk producer buys an ice cream-making plant.
C. The largest milk producer lures customers away from the second largest producer.
D. The four largest milk producers collusively fix prices.
Answer: A
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If the price level rises above what was expected and nominal wages are fixed, then
a. production becomes less profitable so firms will hire fewer workers. b. production becomes less profitable so firms will hire more workers. c. production becomes more profitable so firms will hire fewer workers. d. production becomes more profitable so firms will hire more workers.
The asset market approach seeks to explain exchange rates by focusing on the demand and supply of national moneys.
Answer the following statement true (T) or false (F)
Of the administrative costs for the SNAP program,
A. federal, state, and local governments split the costs evenly. B. states bear 50 percent of the costs. C. 100 percent are paid out of federal tax revenues. D. states pay 100 percent.