Four firms control the market for a particular good, resulting in an HHI of 2,900. Total industry sales are $500, and it is known that two firms each have sales of $175. If each of the remaining two firms have the same sales, then we can conclude that the remaining two firms each have a market share of:
A. 0.15.
B. $75.
C. $125.
D. 0.50.
Answer: A
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According to the 1974 Constitution of the former Yugoslavia, nobody in Yugoslavia owns resources. Being a socialist country, the constitution claimed resources were owned by "society" as a whole. According to the economic way of thinking,
A) their economic problem would be solved. B) resources would finally be used efficiently, because the profit motive would be destroyed. C) people would use Yugoslavia's resources wastefully because they themselves wouldn't have to pay the opportunity cost. D) the central planners would know how to calculate the true values and costs of resource use.
To practice third-degree price discrimination, each of these market conditions must be met except which one?
A) The firm must have market power. B) No arbitrage opportunities can exist between customer groups. C) Different groups of customers with equal own price elasticities of demand must exist. D) Different groups of customers with different own price elasticities of demand must exist.
_________________—a term referring to the process whereby an economy as a whole turns economic inputs such as human capital, physical capital, and technology into output measured as GDP per capita.
a. production function b. aggregate production function c. innovation d. technological change
Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?
a. A country with no or few domestic natural resources is destined to be poor. b. Differences in natural resources have virtually no role in explaining differences in standards of living. c. Some countries can be rich mostly because of their natural resources and countries without natural resources need not be poor, but can never have very high standards of living. d. Abundant domestic natural resources may help make a country rich, but even countries with few natural resources can have high standards of living.