A decrease in the average price level of an economy leads to a decrease in:
a. the purchasing power of wealth.
b. interest rates
c. aggregate expenditure.
d. government spending.
b
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Suppose there are five firms in the disposable diaper market. Hug-Me's share is 30 percent. Plumper's share is 30 percent. Drippy's share is 20 percent. Kool Kid's share is 10 percent. Nappomatic's share is 10 percent
The Herfindahl-Hirschman Index in this industry is A) 100. B) 900. C) 1,350. D) 2,400.
Suppose the interest rate is 5 percent. Which of the following payment options has the highest present value today?
a. $550 one year from today. b. $580 two years from today. c. $600 three years from today. d. $615 four years from today.
"Creative destruction" in a market system is brought about by:
A. Entrepreneurship B. Striking workers C. Regulation by the government D. Money-based trade
Refer to Figure 12.7. If Fred's profit in the top rectangle were 1,300 instead of 500, then the path of the game would be:
A. Fred chooses a small quantity and Barney enters. B. Fred chooses a large quantity and Barney enters. C. Fred chooses a small quantity and Barney stays out. D. Fred chooses a large quantity and Barney stays out.