The business cycle is best defined as alternating periods of increases and decreases in the level of economic activity.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Consider an industry that is made up of six firms with the following market shares: Firm A - 50%, Firm B - 20%, Firms C and D - 10% each, and Firms E and F - 5% each
What is the value of the Herfindahl-Hirschman Index and how will the industry be categorized? A) 2,500; mildly concentrated B) 3,150; highly concentrated C) 8,100; highly concentrated D) 10,000; effectively competitive
Everything else held constant, an increase in the liquidity of bonds results in a ________ in demand for bonds and the demand curve shifts to the ________
A) rise; right B) rise; left C) fall; right D) fall; left
The equilibrium price of labor is called:
A. the wage. B. income, plus benefits. C. opportunity cost. D. the leisure trade-off.
Refer to the figure below. In this case, the private market ________ resources efficiently because ________.
A. does not allocate; some of the costs of paper production do not fall on producers B. does not allocate; demand and supply do not cross at the market equilibrium C. allocates; consumers are willing to pay the external cost of production D. allocates; firms are motivated to maximize profit