Suppose the firms in a five-firm industry have market shares of 30, 30, 20, 10, and 10 percent, respectively. The Herfindahl index for the industry is:
A. 1,900.
B. 2,400.
C. 90.
D. 10,000.
Answer: B
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Which of the following is the best example of a perfectly competitive market?
A) farming B) diamonds C) athletic shoes D) soft drinks E) electricity distribution
If an industry currently has a Herfindahl index of 900 and a merger would raise that to 950, then the Department of Justice would generally
a. challenge the merger because the index would become too large b. challenge the merger because the change in the index is too large c. not challenge the merger because the postmerger index is less than 1,800 d. not challenge the merger if it is a horizontal merger e. challenge the merger if it is a vertical merger
Which of the following is true of the per person income of the West (Western Europe and its offshoots of the United States, Canada, Australia, and New Zealand)
a. It has increased each century and grown steadily since 1500. b. It is now approximately 20 times greater than the figure of 200 years ago. c. It rose steadily between 1000 and 1800, but income growth has slowed during the past 200 years. d. While income per person has increased since 1800, there has been little change in life expectancy and other indicators of quality of life during this time period.
An eclectic aggregate supply curve:
A. Is the supply-side counterpart to monetarist and Keynesian assumptions about the shape of aggregate demand. B. Combines elements of the monetarist and Keynesian assumptions about the shape of aggregate supply. C. Maintains a constant upward slope as the economy moves through the business cycle. D. Is horizontal at all levels of output.