When the government restricts the quantity of a good to zero
A. people's demand for the product evaporates.
B. there is none of the good available anywhere.
C. an underground market develops.
D. producers stop all production.
Answer: C
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Diebold and Rudebusch showed that the composite index of leading indicators did not improve forecasts of industrial production because
A) the index is not produced in a timely manner. B) the government manipulates the index so it never predicts a recession. C) the index is not designed for forecasting. D) data on the components of the index are revised.
For the two industries with market shares listed below, which of the following would be true? Table 14-1 ? Firm 1 Firm 2 Firm 3 Firm 4 Firm 5 Firm 6 Industry A 50% 10% 10% 10% 10% 10% Industry B 20% 20% 20% 20% 10% 10%
A. The concentration ratio would be the same for both industries but the HHI would be higher for Industry A. B. The concentration ratio would be the same for both industries but the HHI would be higher for Industry B. C. The HHI would be the same for both industries but the concentration ratio would be higher for Industry B. D. Both the concentration ratio and the HHI would be the same for both industries.
In 2007, Google spent more than $2 billion on property and equipment. This is called
A. aggregate production investment. B. intermediate inputs. C. aggregate investment. D. investment in physical capital.
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline