The Herfindahl-Hirschman index
A. is no longer applicable to the American economy.
B. measures the degree of concentration within an industry.
C. seldom goes above 100.
D. falls as the degree of concentration rises.
B. measures the degree of concentration within an industry.
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Which of the following explains why a $100 billion reduction in consumption spending might decrease equilibrium real GDP by more than $100 billion?
a. Say's law. b. The quantity theory of money. c. Flexible resource prices. d. The multiplier principle.
Markets can efficiently handle irreversible decisions without involvement of government
a. True b. False Indicate whether the statement is true or false
The production possibilities curve represents the maximum feasible production combinations resulting from
A) the mix of current resources that utilizes all available inputs using current technology. B) a fixed amount of demand by consumers. C) the lack of trade-offs in production. D) the lack of technology used in production.
Strawberries, a normal good, are produced in a perfectly competitive market. Average consumer incomes increase. This will cause the individual strawberry farmer?s marginal revenue to ________ and their profit-maximizing level of output to ________.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease