Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D1 and S2 (point B)
If there is an increase in number of companies producing motorcycles and a decrease in income (assume motorcycles are a normal good), the equilibrium could move to which point?
A) A B) B C) C D) E
C
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Even though the market for bricks has a low concentration ratio nationally, the U.S. Justice Department might still scrutinize any mergers in this industry because the
A) HHI is high nationally. B) HHI is above 1800 nationally. C) HHI is below 1800 nationally. D) market is regional not national, and the regional concentration might be high.
The divergence between money costs and opportunity costs is the least in which of the following situations?
a. China uses millions of otherwise unemployable workers to build roads with picks and shovels. b. Wilhelm, an engineer at Exxon, is drafted-his army salary is $2,000 per month. c. Colleen quits her job to stay at home and raise her children. d. A university, using a private contractor, builds a field house on land it purchased at full market value from a local farmer.
Educational attainment tends to be
a. low in countries with high population growth. b. low in countries with low population growth. c. high in countries with high population growth. d. None of the above are true.
Exhibit 1A-5 Straight line
In Exhibit 1A-5, as X increases along the horizontal axis, from point C to point D on the line, the Y values
A. increase so the relationship between X and Y is direct. B. decrease so the relationship between X and Y is inverse. C. remain unchanged so the relationship between X and Y is independent. D. change so the relationship between X and Y is variable.