"If an industry's Herfindahl-Hirschman Index is below 1,000, a merger between any two firms in that industry will be disallowed." Comment on the accuracy of the previous statement
What will be an ideal response?
The statement is incorrect in at least three dimensions. First, the lower the Herfindahl-Hirschman Index, the more competitive the industry and hence the more likely the government will allow a merger to occur. Second, even if the Herfindahl-Hirschman Index is high, a merger that increases it only a small bit will not be challenged. And third, the Herfindahl-Hirschman Index is only part of the information considered when the government is determining whether to challenge a merger.
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Which of the following will create a demand for or a supply of currencies?
a. Trade in goods b. Trade in services c. Trade in financial instruments d. Any of the above.
The slope of the aggregate expenditure line is
a. less than zero b. less than 1.0 c. equal to 1.0 d. greater than 1.0 e. the same as the slope of the 45-degree line
Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes
a. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage also increased. b. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage decreased. c. your real wage increase. If your real wage rose by a greater percentage than the price level, then your nominal wage also increased. d. your real wage decrease. If your real wage rose by a greater percentage than the price level, then your nominal wage decreased.
In the last two decades, women have completely closed the gender earnings gap.
Answer the following statement true (T) or false (F)