A Herfindahl-Hirschman Index value of 1,950 indicates that the industry is not competitive.
a. true
b. false
Ans: a. true
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One reason that consumers and businesses might not act rationally is
A) they may not realize their actions are inconsistent with their goals. B) they do not always value fairness when they make choices. C) it is difficult to obtain enough information about the elasticities of demand and supply. D) consumer tastes change constantly.
Recurring fluctuations in business activity over the course of one year are known as
a. seasonal variations. b. random fluctuations. c. the trend. d. the business cycle.
A flight to quality refers to a move by investors:
A. away from low-quality bonds towards high-quality bonds. B. towards securities of other countries and away from U.S. Treasuries. C. towards precious metals and away from U.S. Treasury bonds. D. away from bonds towards stocks.
The price elasticity of supply is higher when
A) the number of buyers in the market decreases. B) the product in question is an inferior good. C) the number of buyers in the market increases. D) producers have more time to adjust to price changes.