Suppose there are two industries, A and B. Suppose that mergers are proposed in both industries, and the Herfindahl-Hirschman Index would increase by 500 in each one. If antitrust officials allow the mergers in industry A but challenge the mergers in industry B, the most likely explanation is that
a. there are political motivations to antitrust enforcement
b. industry A was already less competitive than industry B
c. industry A had a balanced oligopoly and industry B did not
d. industry A started as a more competitive industry than B
e. antitrust authorities made a random decision
D
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Consider four possible benefits of a water resources project: I. Provides employment to construction workers currently building houses. II. Provides electric power to the market. III. Provides reduced flood risk to individuals living along the river. IV. Raises the profits of MacDonald's stands in the area that serve construction workers. Which of these are social benefits of the project?
a. All of them. b. I, II, and III, but not IV. c. I and III, but not II and IV. d. II and III, but not I and IV.
Taxes affect a. only buyers
b. only sellers. c. only buyers and sellers. d. buyers, sellers, and government tax revenue.
If there is an increase in foreign financial investment in the United States as the result of large U.S. budget deficits and attractive interest yields,
a. fiscal policy will be more expansionary since there will be no crowding-out effect. b. fiscal policy will be more expansionary since U.S. residents will increase their savings, so they can repay the foreigners in the future. c. foreign exchange value of the dollar will depreciate, which will lead to an increase in net exports and aggregate demand. d. foreign exchange value of the dollar will appreciate, which will lead to a decrease in net exports and aggregate demand.
If the U.S. government wants to increase the price of the dollar relative to the euro, it could buy euros with dollars in the foreign exchange market
Indicate whether the statement is true or false