The Herfindahl-Hirschman index is a measure of
A) the profit margin of an industry.
B) market size.
C) the degree of collusion among firms in a market.
D) the degree of concentration among firms in a market.
D
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Which of the following is not a characteristic of the broiler chicken industry?
A) A significant degree of industry concentration, with the four largest firms producing 40 percent of the industry's output. B) A significant degree of real and subjective product differentiation. C) An inability of individual firms to have any influence market price. D) A significant amount of advertising.
Debt grew faster than GDP during and after the recent Great Recession, when the government had to spend more (as for unemployment benefits), while its tax revenue shrank
a. True b. False Indicate whether the statement is true or false
The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Which of the following is true regarding this economic model?
a) Because it does not take into account the role of government, the circular-flow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy. b) Because it does not take into account international trade, the circular-flow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy. c) While simple, the circular-flow diagram can still be useful for the purposes of modeling how dollars and resources move throughout an economy. d) Because, in reality, the economy is very large, the simplicity of the circular-flow diagram makes it useless for the purposes of modeling how dollars and resources move throughout an economy.
If the quantity effect outweighs the price effect of a price increase, then demand is:
A. elastic. B. inelastic. C. normal. D. unit elastic.