If there are two firms in an industry and each has 50 percent market share, then the Herfindahl-Hirschman Index equals
A. 2,500.
B. 2,800.
C. 5,000.
D. 6,600.
Answer: C
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As real GDP ________, aggregate planned expenditure ________
A) decreases; remains the same, because it is independent from real GDP B) increases; remains the same, because the increase in some components is precisely offset by the decrease in others C) increases; decreases D) decreases; increases E) increases; increases
The settlement account of the balance of payments
a. records how much foreigners paid U.S. citizens in interest. b. records how much the U.S. government collected in tariffs. c. explains how the balance-of-payments deficit or surplus was financed. d. explains how the trade surplus was distributed.
Inventions like gunpowder and the wheelbarrow were created by the Chinese hundreds of years ago. The fact that such items were not put to productive use was caused primarily by a lack of ____
a. financial capital b. entrepreneurship c. an adequate price system d. marginal analysis
Which of the following firms have no market power?
A. clothing companies B. fast food chains such as McDonald's C. theme parks D. gold panners during the gold rush