Suppose there are four firms in an industry. The market shares of the four firms are 5 percent, 20 percent, 35 percent, and 40 percent. The Herfindahl-Hirschman index for that industry is
A. 1,250.
B. 6,650.
C. 100.
D. 3,250.
Answer: D
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The basic aggregate demand and aggregate supply curve model helps explain
A) price fluctuations in an individual market. B) short-term fluctuations in real GDP and the price level. C) long-term growth. D) output fluctuations in an individual market.
Beginning from a long run equilibrium in an increasing cost industry, if there is a substantial, permanent fall in demand for industry output:
a. firms will leave the industry, the quantity produced will fall, and prices will end up lower than their initial long run equilibrium level. b. firms will leave the industry, the quantity produced will fall, and prices will end up higher than their initial long run equilibrium level. c. firms will leave the industry, the quantity produced will fall, and prices will end up at the same level as their initial long run equilibrium level. d. firms will enter the industry, the quantity produced will rise, and prices will end up lower than their initial long run equilibrium level.
When the U.S. dollar depreciates against other currencies:
a. foreign goods become less expensive to U.S. buyers. b. U.S. goods become more expensive to foreign buyers. c. foreign currencies depreciate against the U.S. dollar. d. the volume of U.S. imports decline. e. the volume of U.S. exports decline.
Which of the following provides an example of command-and-control regulation?
A. ?Taxing producers based on the external costs created by their pollution, thus internalizing external costs. B. ? Requiring firms to reduce their pollution by 50 percent, thus allowing them to emit 50 percent of their historical emissions, and allowing them to freely buy and sell allowances. C. ?Requiring firms to use a particular type of pollution-control technology, such as smokestack scrubbers or catalytic converters. D. ?Subsidizing firms that exceed their pollution-control targets.?