The term market power refers to
A. A firm's ability to alter the market price or quantity of a good or service.
B. A firm's ability to eliminate free riders.
C. The government's ability to change market outcomes.
D. The government's authority to tax businesses.
Answer: A
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The Herfindahl-Hirschman Index measures
a. concentration in the industry. b. industrial average output. c. economies of scale. d. consumer confidence.
For an imaginary economy, the consumer price index was 80 in 2014, 100 in 2015, and 140 in 2016 . Which of the following statements is correct?
a. If the basket of goods that is used to calculate the CPI cost $40 in 2014, then that basket of goods cost $60 in 2015. b. If the basket of goods that is used to calculate the CPI cost $25 in 2015, then that basket of goods cost $35 in 2016. c. The overall level of prices increased by 60 percent between 2014 and 2016. d. All of the above are correct.
A motorist who chooses high-deductible versus low-deductible car insurance is signaling that he is:
A. a safe driver. B. a reckless driver. C. likely to not pay. D. likely to be a low income earner.
Which of the following transactions is included in gross output (GO)?
A. the sales of corporate bonds to an investor B. the estimated costs of human health effects due to air pollution C. the sales of an accounting software package to an accounting firm D. sales of used goods