"The concentration measures for the United States calculated by the Department of Commerce understate the degree of concentration in the newspaper industry." Do you agree? Explain
What will be an ideal response?
Yes. The concentration measures calculated by the Department of Commerce take a national view of the market while the newspaper industry consists of mainly local markets. The calculated concentration measures for newspapers are low, but there is a high degree of concentration in the newspaper industry in most cities.
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Refer to Figure 4-10. What area represents the deadweight loss after the imposition of the ceiling?
A) J + H B) C + E C) C + E + J + H D) G + H
In events leading to the collapse of the housing bubble, inflated home values created a:
A. wealthier economy, which caused economic growth. B. false sense of wealth, which increased aggregate demand. C. false sense of wealth, which spurred economic growth to decrease. D. wealthier economy, which caused inflation.
Considering its effects through income, the price level, and interest rates only, expansionary fiscal policy causes the value of a country's currency to:
A. move unpredictably. B. rise. C. remain unchanged. D. fall.
If the current macroequilibrium is below an output level of that associated with full employment, how would the current equilibrium be impacted by a rightward shift of the aggregate supply curve, ceteris paribus?
A. A higher price level and a lower level of output. B. A lower price level and a higher level of output. C. A recession or depression. D. A higher price level and a higher level of output.