When small firms in a concentrated industry merge, it will increase the Herfindahl-Hirshman Index but not change the four firm concentration ratio
a. True
b. False
Indicate whether the statement is true or false
True
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Explain why expansionary monetary policy would not result in reduced unemployment rates if workers and firms have rational expectations
What will be an ideal response?
In the open-economy macroeconomic model, if there were a surplus in the market for foreign-currency exchange, the real exchange rate would appreciate
a. True b. False Indicate whether the statement is true or false
In the Edgeworth box diagram, if the initial allocation of consumer goods is off the contract curve, then we can be sure that
A. the MRS of each consumer is the same. B. both parties can be made better off. C. trade will occur if allowed and transactions costs are high. D. the initial allocation is unfair.
Consider an economy that only produces wooden chairs. In 2012, the economy produced 100 wooden chairs priced at $10 each. The nominal GDP of the economy for the year 2012 will be:
A) $10. B) $1,000. C) $100. D) $10,000. Consider an economy that produces only cell phones. In the year 2012, the economy manufactures 275 cell phones, and each cell phone sells at $200. In the year 2013, the economy manufactures 280 cell phones but the price of each cell phone falls to $180.