Suppose the market for good X has a four-firm concentration ratio of 0.70. Having worked for the four largest firms in the industry, you know the sales for these four firms are given by $2,000,000, $2,250,000, $2,500,000, and $2,750,000. Based on this information, we know that sales for the remaining firms in the industry are:
A. $5,505,000.
B. $6,875,000.
C. $4,071,430.
D. $9,433,320.
Answer: C
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Use the following graph to answer the next question.
All else held constant, a leftward shift of the demand curve would ________.
A. cause a surplus of euros B. appreciate the euro C. depreciate the dollar D. reduce the equilibrium quantity of euros
Refer to the above graph. At output level H, the area of economic profit is:
A. ACG. B. 0AEH. C. BCGF. D. BAEF.
The wealth effect is
A. the result of wealthy people increasing the savings. B. the increase in savings and consumption resulting from increases in residential house prices and gains in the stock markets. C. the increase in the number of wealthy individuals in a country. D. the result of large increases in the balance sheets of the banks.
When measuring GDP, only final goods and services are counted in order to avoid double counting
Indicate whether the statement is true or false