If the income elasticity of demand is 2, the good is
a. a luxury.
b. a normal good (but not a luxury).
c. an inferior good.
d. a Giffen good.
a
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Suppose that the widget industry has a Herfindahl-Hirschman index of 1,200 . Two firms have proposed a merger. Firm A has a current market share of 5 percent. Firm B has a market share of 7 percent
Will the Justice Department challenge the merger? Explain.
Proponents of zero-inflation policies acknowledge that the public is unconcerned about the inflation rate
a. True b. False Indicate whether the statement is true or false
During the second half of the 19th century, the United States
A. was a net creditor nation. B. had a surplus in its current account. C. borrowed heavily from European nations to acquire capital in order to industrialize. D. borrowed heavily from European nations to purchase consumer goods.
________ firms use a product differentiation strategy to achieve market power.
A. Perfectly competitive B. Monopolistically competitive C. Oligopolistic D. Monopolistic