Whenever the largest firm in a concentrated industry breaks into two equal sized parts, the four firm concentration ratio ___ and the Herfindahl-Hirschman Index ____:
a. Will fall; will fall
b. Will fall; may fall or stay the same.
c. May fall or stay the same; will fall.
d. May fall or stay the same; May fall or stay the same.
a
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In evaluating the degree of economic efficiency in a market, we can state that the size of the deadweight loss in a market will be smaller
A) the greater the difference between marginal cost and price. B) the smaller the difference between marginal cost and average total cost. C) the smaller the difference between marginal cost and price. D) the greater the difference between marginal cost and average revenue.
When one applies the Heckscher-Ohlin model of trade to the issue of trade-related income redistributions, one must conclude that North South trade, such as U.S.-Mexico trade
A) must help low skill workers on both sides of the border. B) is likely to hurt high-skilled workers in the U.S. C) is likely to hurt low-skilled workers in the U.S. D) is likely to hurt low-skilled workers in Mexico. E) is likely to help highly skilled workers in Mexico.
At the end of the production chain that a typical economy moves up along is
a. raw material b. agriculture c. hunting and gathering d. services e. manufacturing
When a nation reduces the barriers to international trade:
A. each individual citizen becomes worse off. B. the total value of all goods and serviced produced by the nation rises. C. each individual citizen becomes better off. D. the total value of all goods and services produced by the nation falls.