If the Herfindahl-Hirschman Index for an industry is 8,528, is the industry competitive or concentrated?
What will be an ideal response?
With a Herfindahl-Hirschman Index of 8,528, the industry is quite concentrated or, in other words, the industry is not very competitive.
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The gross domestic product of a nation measures:
a. the amount of goods and services exported by the nation. b. the amount of goods and services imported by the nation. c. total expenditures by the nation's government d. the size of the nation's economy.
When new professors are hired, their job performance is monitored closely. If they meet their institution's standards, they will eventually receive tenure. After receiving tenure, professors' job performance is less closely monitored, and they become difficult to fire. Tenure thus creates
a. adverse selection. b. a Condorcet paradox. c. a screening problem. d. a moral hazard problem.
Suppose expected inflation and actual inflation are both low, and unemployment is at its natural rate. If the Fed then pursues an expansionary monetary policy, which of the following results would be expected in the short run?
a. The short-run Phillips curve would shift to the left. b. The short-run Phillips curve would shift to the right. c. The economy would move up and to the left along a given short-run Phillips curve. d. The economy would move down and to the right along a given short-run Phillips curve.
Things that have already been produced that are in turn used to produce other goods and services over time are called "capital."
Answer the following statement true (T) or false (F)