Listed in the above table are the market shares for the firms in two different industries. Each industry has only eleven firms. Find the four-firm concentration ratio and the Herfindahl-Hirschman Index for each industry
What will be an ideal response?
Industry A has a four-firm concentration ratio of 59 percent and a Herfindahl-Hirschman Index of 1,186. Industry B has a four-firm concentration ratio of 39 percent and Herfindahl-Hirschman Index of 914.
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In 2009, household spending was the smallest component of total spending in the U.S. economy
a. True b. False Indicate whether the statement is true or false
Suppose a consumer's nominal income is $50,000 and the cost-of-living index is 1.3. The consumer's real income is:
A. $50,000. B. $65,000. C. $57,500. D. $38,462
A decrease in supply is represented by a
a. movement downward and to the left along a supply curve. b. movement upward and to the right along a supply curve. c. rightward shift of a supply curve. d. leftward shift of a supply curve.
Suppose government spending rises by $120 billion. It follows that if private expenditures
A) rise by $120 billion, complete crowding out exists. B) fall by $100 billion, incomplete crowding out exists. C) remain unchanged, complete crowding out exists. D) rise by more than $120 billion, complete crowding out exists. E) b and c