If there are four firms in a market and one has a 40 percent market share, one has a 25 percent market share, one has a 20 percent market share, and one has a 15 percent market share, the Herfindahl-Hirschman Index (HHI) in this market is ________.
A) 2,850 B) 5,250 C) 1,270 D) 8,250
A) 2,850
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Refer to the accompanying figure. Suppose the solid line shows the current demand curve for coffee. In response to an announcement that much of next year's coffee crop has been destroyed by a storm in Brazil, you should expect:
A. neither a change in quantity demanded nor a shift in demand because next year's coffee crop will not affect the current demand for coffee. B. an increase in the quantity of coffee demanded, but no shift in the demand curve. C. the demand curve to shift to D(B) in anticipation of higher future prices. D. the demand curve to shift to D(A) in anticipation of higher future prices.
Before entering the debate of whether or not access to medical care is a right, it is important to distinguish between a negative right and a positive right. Which of the following statements is true?
a. Positive rights are freedom-preserving rights; they are enumerated in the U.S. Constitution. b. Negative rights are resource-extracting rights. They require taking resources from one person in order for someone else to receive them. c. Coercion of some kind is essential to guarantee a negative right. d. Entitlements such as Medicare and Medicaid are examples of negative rights. e. Consider the following situation: Peter has no money. In order for Peter to exercise his right to medical care, the law requires that Paul pay for it. This is an example of medical care as a positive right.
The impact of instituting investment tax credits is
A) to stimulate private sector investments and increase aggregate demand. B) to stimulate private production and increase aggregate supply. C) to encourage individuals to save in an effort to increase funds available for investment. D) to curtail in excessive lending by financial institutions.
Describe the two basic strategies of unions in increasing wage rates for their members.
What will be an ideal response?