The ease with which an asset can be converted to money is its
A) liquidity.
B) adaptability.
C) accessibility.
D) rigidity.
Ans: A) liquidity.
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The table above lists the market shares of the twenty makers of personal computers. The four-firm concentration equals
A) 5 percent. B) 20 percent. C) 25 percent. D) 100 percent.
Assume that a perfectly competitive increasing-cost industry is in long-run equilibrium when market demand suddenly increases. Which of the following statements is not correct?
a. Existing firms will earn economic profits in the new long-run equilibrium b. Existing firms will increase output in the short run c. New firms will enter the industry in the long run d. Some resource suppliers to the industry will earn higher income e. The new long-run equilibrium price will exceed the original equilibrium price
Which of these common resources is LEAST regulated today?
a) government land in the North b) the Great Lakes c) national parks d) the ocean
Suppose an LDC is producing on its production possibilities frontier such that it produces a subsistence level of consumption goods and enough capital goods just to replace the existing capital that depreciates. Foreign investment can lead to economic growth for this LDC in which of the following ways?
A. The LDC uses the investment to control inflation. B. The mere presence of more money in the economy will lead to economic growth. C. The LDC invests in consumption goods to move beyond the subsistence level this year. D. The LDC invests in additional capital such that the rate of capital formation exceeds the value of capital depreciated.