If you sum the squares of the market shares of each firm in an industry (as measured by percent of industry sales), you are calculating the:
A. four-firm concentration ratio.
B. Herfindahl index.
C. degree of collusion.
D. Lerner index.
Answer: B
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The government can overcome the inefficiency created by a good with an external benefit by using
A) public provision. B) marketable permits. C) taxes. D) emission charges. E) None of the above answers is correct.
Which of the following would be considered human capital?
a. the financial capital a person earns over a lifetime of investing b. the machinery a worker uses to produce a product c. the training a worker receives when starting a new job d. the break room in a factory where employees go to have coffee
In the aggregate demand and aggregate supply model, an increase in the growth rate of the velocity of money differs from an increase in money supply growth rate in that:
A. the SRAS curve will eventually shift back to its original position after an increase in money supply growth. B. the AD curve will eventually shift back to its original position after an increase in velocity growth. C. the SRAS curve will eventually shift upwards after an increase in velocity growth. D. the AD curve will eventually shift back to its original position after an increase in money supply growth.
Firms undertake multinational operations in order to
A) hire low-wage workers. B) manufacture in nations they have difficulty exporting to. C) obtain necessary factor inputs. D) All of the above