In a purely competitive market, the Herfindahl Index would have a value approaching
a. 1.
b. 100.
c. 0.
d. infinity.
c. 0.
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Measuring the sensitivity of bank profits to changes in interest rates by multiplying the gap times the change in the interest rate is called
A) basic duration analysis. B) basic gap analysis. C) interest-exposure analysis. D) gap-exposure analysis.
Hospitals announce that there are not enough nurses available to keep them fully staffed. Economically speaking, what does this announcement mean?
A) The market wage for trained nurses is currently above the equilibrium wage. B) There is currently a surplus of nurses in this market. C) The market wage for nurses will eventually rise to the market clearing wage. D) The market will adjust very rapidly to correct this imbalance because anyone can be a nurse without any training.
What do you mean by Coase theorem?
The universal bank is characteristic of:
a. Germany b. early American capitalism c. Japan d. the Four Tigers e. none of the above