The Herfindahl index and the concentration ratio fail to give a complete picture of an economy's competitiveness because:
A. they measure each firm's share of sales rather than each firm's share of profits.
B. they don't account for mergers within an industry.
C. many corporations are conglomerates, spanning a variety of different industries.
D. they are based on market share, not market size.
Answer: C
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Reducing class size will
A. improve student test scores. B. decrease student test scores. C. have no impact on student test scores. D. have an undetermined impact on test scores.
A car sells at different prices at different dealerships in an oligopolistic market. If a consumer has imperfect information about the price of a car at each dealership, the consumer should
A. always gather all available information about prices. B. gather information about prices until the expected marginal utility of more information equals the marginal cost of gathering it. C. gather information about prices only if it can be gathered without cost. D. ignore information about prices because it is irrelevant to making an “optimally imperfect” decision.
If output per capita grows by a constant 5% per year, then the standard of living would grow by about ________ over 3 years
A) 12% B) 16% C) 17% D) 18% E) 20%
A tax on polluting firms
a. would shift the LRAC curve upward. b. would shift the LRAC curve downward. c. would have the same impact on the firm as a subsidy. d. tends to have the perverse effect of increasing pollution.