If demand for Rolls Royce automobiles rises in an area where incomes have increased, this tells us that a Rolls Royce is
A) a normal good.
B) an inferior good.
C) a complementary good.
D) a substitute good.
A
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A price floor will result in
a. a decrease in price if the price floor is below the market price. b. a decrease in price if the price floor is above the market price. c. an increase in price if the price floor is above the market price. d. the same price as the market price.
A study using data from the late 1960s showed that black baseball players earned less than comparable white players. Studies of more recent salaries in baseball, however, have found no evidence of discriminatory wage differentials
a. True b. False Indicate whether the statement is true or false
According to the real business cycle theory, which of the following is a TRUE statement about the effects of an oil shock in the 1970s?
A. Relative prices changed but there was no impact on the price level in general. B. The natural rate of unemployment remained unchanged, but employment levels did decline. C. The shock affected real variables only and did not affect nominal variables. D. The shock shifted the short-run aggregate supply curve but not the long-run aggregate supply curve.
Suppose there are four firms in an industry. The market shares of the four firms are 5 percent, 20 percent, 35 percent, and 40 percent. The Herfindahl-Hirschman index for that industry is
A) 6,650. B) 3,250. C) 1,250. D) 100.