A low concentration ratio suggests
A) a high degree of monopolization.
B) a high degree of competition.
C) that wages are a low share of costs.
D) that wages are a high share of costs.
B
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Explanations for the high saving rate in China consistent with the life-cycle reason for saving include:
A. few opportunities to borrow funds for education or paying for a house. B. the desire to leave resources to children who provide support and attention to parents in their old age. C. China's limited social safety net provides most people with little protection against health problems and medical costs. D. low unemployment rates in China.
The Fed raises the federal funds rate when it
A) fears inflation. B) wants to increase the quantity of money. C) fears recession. D) wants to encourage bank lending. E) cannot change the quantity of money.
An example of an uncontrollable resource that contributes to diseconomies of scale for a movie theater is
a. concession stand staff b. public roads congested with traffic c. volume discounts from movie distributors d. a single lobby in the theater e. bigger, more noticeable newspaper ads
If the U.S. government were to run a substantial budget deficit, what would be the effects on the economy under the new classical view?