Using the concentration ratio to measure the degree of competition
A. may overstate the degree of competition because it ignores imported goods.
B. may overstate the degree of competition because inter-industry competition is ignored.
C. may understate the degree of competition because it ignores imported goods.
D. may understate the degree of competition because market share changes annually.
Answer: C
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In Econland autonomous consumption equals 200, the marginal propensity to consume equals 0.9, net taxes are fixed at 100, investment is fixed at 200, government purchases are fixed at 300, and net exports are fixed at 50. Short-run equilibrium output in this economy equals:
A. 6600 B. 850 C. 7500 D. 5000
Suppose the economy is at point B. If a recession in another country decreases exports, to what point might economy move in the short run?
A) It stays at point B. B) It shifts to a point such as A. C) It shifts to a point such as C. D) None of the above answers are correct because it is the SAS curve that shifts, not the AD curve.
The Federal Reserve will engage in a repurchase agreement when it wants to ________ reserves ________ in the banking system
A) increase; permanently B) increase; temporarily C) decrease; temporarily D) decrease; permanently
As a result of the financial crisis, checkable deposits:
A) became a smaller portion of overall liabilities B) experienced little change C) hit a new record high in terms of the percent of liabilities D) nearly doubled in terms of the percent of liabilities