If the HHI for an industry equals 3,200,
A) firms in the industry are most likely to make zero economic profit
B) the industry is probably an oligopoly
C) firms in the industry are likely to act independently of each other
D) firms in the industry must enter a cartel in order to earn an economic profit
E) the industry is almost surely monopolistic competition
Ans: B) the industry is probably an oligopoly
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Common resources are those that are:
a. excludable and rivalrous. b. excludable and nonrivalrous. c. nonexcludable and nonrivalrous. d. nonexcludable and rivalrous.
Analysis indicates that the economy is in a recessionary gap. Which of the following is the most appropriate policy mix in this situation?
a. a budget surplus and expansionary monetary policy b. a budget deficit and expansionary monetary policy c. a budget deficit and contractionary monetary policy d. a budget surplus and contractionary monetary policy
Suppose the variable x2 has been omitted from the following regression equation,
is the estimator obtained when 
is omitted from the equation. The bias in
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A. 
>0 and 
and 
are positively correlated
B. 
<0 and 
and 
are positively correlated
C. 
>0 and 
and 
are negatively correlated
D. 
= 0 and 
and 
are negatively correlated
If the actual GDP is less than potential GDP
What will be an ideal response?