The concentration and Herfindahl indices computed by the U.S. Bureau of Census must be interpreted with caution because:
A. they may overstate the actual level of concentration in markets served by foreign firms.
B. the definition of product classes used to define an industry affects the results.
C. they may understate the degree of concentration in local markets.
D. All of the statements associated with this question are correct.
Answer: D
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Aid is a relatively small percentage of all foreign capital flows to developing countries. Is it unimportant?
What will be an ideal response?
Which of the following is NOT a characteristic or focus of microeconomics?
A) individual consumers. B) analysis of aggregate economic variables C) firm behavior D) individual markets
Suppose the economy is on the classical range of the aggregate supply curve and has a problem with inflation. According to Keynesian theory, which of the following is an appropriate discretionary fiscal policy to use in this situation?
a. A reduction in the money supply. b. Less government regulation. c. Increase federal spending. d. Higher taxes.
Define the following terms and explain their importance to the study of macroeconomics:
a. aggregation b. recession c. gross domestic product d. final goods and services e. stabilization policy