There are 30 firms in an industry. What happens to that industry's four-firm concentration when the third- and fourth-largest firms merge?
A) Nothing, because their shares are already included in the concentration calculation.
B) The industry's concentration ratio will fall.
C) The industry's concentration ratio will increase.
D) It is impossible to know without more information.
C
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A bank's required reserves are calculated by multiplying ________
A) its deposits by the required reserve ratio B) the sum of its deposits and cash in its vault by the required reserve ratio C) cash in its vault by the required reserve ratio D) the gold in its vault by the required reserve ratio
The marginal product of labor (MPL) is given by the ________
A) labor share of income + average output per unit of labor B) labor share of income - average output per unit of labor C) labor share of income ÷ average output per unit of labor D) labor share of income × average output per unit of labor E) none of the above
Assume the table shown is for a hat factory, and shows the total production of hats given various numbers of employees. Adding a third worker increases production:
A. by 60 hats.
B. by more than the second worker.
C. to 110 hats.
D. All of these are true.
Which of the proposals for education reform is likely to be supported by an economist concerned with efficiency?
a. Give families "education stamps" to be spent at the school of their choice. b. Assign children to particular schools based on where they live. c. Give all schoolchildren the same number of years of education. d. Abolish private (i.e., fee-charging) schools.