Suppose there are seven firms in a market where the three largest firms supply 20% of the market-clearing quantity and the other four firms supply 10% of the market-clearing quantity. What is the five-firm concentration ratio (i.e
, the share of total sales controlled by the five largest firms in the market)? A) 60%
B) 70%
C) 80%
D) 90%
C
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The long-run Phillips curve applies when the economy is at full employment, so the long-run Phillips curve is
A) upward sloping. B) downward sloping. C) vertical. D) horizontal. E) unnecessary.
Which does M1 include?
a. Coins and currency in circulation, checkable deposits, and credit cards b. Coins and currency in circulation, checkable deposits, and savings accounts c. Coins and currency in circulation checkable deposits, and traveler’s checks d. Coins and currency in circulation, coins and currency owned by banks, and traveler’s checks
The U.S. Constitution prohibits government from imposing tariffs and quotas that restrict _______________. The authors of Common Sense Economics would also apply this prohibition to _______. (Fill in the blanks)
A) exports; imports B) imports; exports C) budget deficits; budget surpluses D) budget surpluses; budget deficits
If the Fed purchases federal government bonds on the open market, bank reserves will
A) decrease leading to a decrease in the money supply. B) increase leading to a decrease in the money supply. C) increase leading to an increase in the money supply. D) decrease leading to an increase in the money supply.