The Herfindahl-Hirschman index is measured by
A. squaring the sum of the market shares of the all firms in an industry.
B. adding the market shares of the four largest firms in an industry.
C. adding the squares of the market shares of all firms in an industry.
D. adding the market shares of all firms in an industry.
Answer: C
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Which of the following statements is NOT true?
A. Economic theory often makes unrealistic assumptions. B. Economists ignore details to focus on complex problems. C. Abstraction is not an important part of economic analysis. D. The word theory means different things to economists and to ordinary people.
If the Fed wants to reduce the value of the dollar, it will
A) sell foreign assets and buy dollars. B) sell dollars and buy foreign assets. C) buy foreign assets and also buy dollars. D) sell foreign assets and also sell dollars.
Suppose a coupon bond with a par value of $1000 is currently priced at $950 and has a coupon of $40. Which of the following is true?
A) current yield > coupon rate B) current yield < coupon rate C) coupon rate has risen D) coupon rate has declined
Each point of a firm's supply curve represents a price-quantity pair where:
A. MC = MR. B. P = min ATC. C. P = min AVC. D. MC = ATC.