If an industry has exactly 20 firms with identical sales, the Herfindahl index must be:
A. greater than 200 but less than 400.
B. greater than 400.
C. less than 100.
D. greater than 100 but less than 200.
Answer: B
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Why do we observe the Leontief paradox?
What will be an ideal response?
To model the input decisions for a production system, we plot labor on the horizontal axis and capital on the vertical axis. In the short run, labor is a variable input and capital is fixed
The short-run expansion path for this production system is: A) a vertical line. B) a horizontal line. C) equal to the 45-degree line from the origin. D) not defined.
If you were the chairman of the Fed and had to develop effective countercyclical monetary policy during a recession, you would lower
a. the legal reserve requirement, cut the discount rate, and sell government bonds on the open market b. the legal reserve requirement, raise the discount rate, and sell government bonds on the open market c. the legal reserve requirement, raise the discount rate, and buy government bonds on the open market d. the discount rate, cut the discount rate, and raise the margin requirement e. the reserve requirement, lower the discount rate, and buy government bonds on the open market
A table which shows the quantities of a particular good or service that producers are willing to sell (supply) at various prices is known as a supply:
A. schedule. B. graph. C. curve. D. figure.