Using the concentration ratio to measure the degree of competition
A) may understate the degree of competition because it ignores imported goods.
B) may overstate the degree of competition because it ignores imported goods.
C) may overstate the degree of competition because inter-industry competition is ignored.
D) may understate the degree of competition because market share changes annually.
A
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The above figure shows supply and demand curves for apartment units in a large city. If the city government passes a law that establishes $350 per month as the legal maximum rent, consumer surplus will be
A) a. B) a + b + f. C) a + b + c. D) a + b + c + f + g.
The supply curve shows: a. the same basic information as a demand curve
b. how the average cost of production varies with price. c. how the quantity supplied varies with price. d. how the quantity demanded varies with price.
The index of leading indicators is
a. an alphabetical listing of the most popular indicators in the economy for a given month. b. a composite index of indicators that provides information on the future direction of the economy. c. a measure of the level of aggregate output. d. a composite index designed to measure inflation.
A banking panic is an episode in which:
A. depositors, afraid of increasing interest rates, attempt to engage in discount-window borrowing at the Federal Reserve. B. depositors, spurred by news or rumors of possible bankruptcy of one bank, rush to withdraw deposits from the banking system. C. commercial banks, concerned about high interest rates, rush to borrow at the Federal Reserve discount rate. D. commercial banks, fearing Federal Reserve sanctions, unwillingly participate in open-market operations.