A Herfindahl-Hirschman Index is calculated by
A) summing the amount of sales by the four largest firms and dividing by total industry sales.
B) dividing the number of firms wanting to merge by the total number in the industry.
C) summing the squares of the market shares of each firm in the industry.
D) dividing the advertising expenditures of the firms that want to merge by total industry advertising expenditures.
Answer: C
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A sharp increase in stock prices makes people much wealthier. If the main effect of this increased wealth is felt on labor supply, what happens to current employment and the real wage rate?
A) Both employment and the real wage rate would increase. B) Both employment and the real wage rate would decrease. C) Employment would increase and the real wage would decrease. D) Employment would decrease and the real wage would increase.
Lauren has a savings account into which she puts money every month so she will eventually have enough for a down payment on a house. This is an example of which function of money?
a) Barter b) Medium of exchange c) Store of value d) Unit of account
Which of the following would likely result as a consequence of rent controls?
A. a reduction in the rate of construction of rental housing units B. limits on tenant mobility C. unimproved buildings and apartment complexes D. All of these are correct.
The consumer price index implicitly assumes that the demand curve for each good and service in the representative market basket is
A) positively sloped. B) negatively sloped. C) vertical. D) horizontal.