You are told that the four-firm concentration ratio in an industry is 20. Based on this information you can conclude that:
A. Each of the top four firms has 20 percent of industry sales
B. The four largest firms account for a combined 80 percent of the industry sales
C. The four largest firms account for 20 percent of industry sales
D. Each of the four largest firms accounts for 5 percent of industry sales
C. The four largest firms account for 20 percent of industry sales
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A decrease in disposable income will:
a. shift the consumption function upward b. shift the consumption function downward. c. cause an upward movement along the consumption function. d. cause a downward movement along the consumption function. e. make the consumption function flatter.
The short-run tradeoff between inflation and unemployment implies that, in the short run,
a. a decrease in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate. b. an increase in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate. c. policymakers are able to reduce the inflation rate and, at the same time, reduce the unemployment rate. d. policymakers can influence the inflation rate, but not the unemployment rate.
Under perfect competition all sellers sell a(n) ___________ product.
Fill in the blank(s) with the appropriate word(s).
If a farmer buys one-hundred more acres for her flower farm, she is making a
A. short-run decision. B. long-run decision. C. immediate-run decision. D. variable-input decision.