Which of the following can be categorized as derived demand?
a. A decline in the demand for building products following a drop in housing demand.
b. An increase in demand for gasoline following a fall in the price of petroleum products.
c. An increase in the demand for woolens in winter.
d. A decline in the demand for labor on account of outrageous demands of trade unions.
a
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The above table shows the market shares for all the landscaping services in a suburban area. Which of the following mergers would cause the greatest increase in the four-firm concentration ratio?
A) A and B B) D and E C) E and F D) six of the smallest firms
Suppose that nominal interest rates double. As a result, the quantity of money doubles as well
Indicate whether the statement is true or false
Consider two people, Sandy Roos, who earns $25,000 . and Gary Behrman, who earns $50,000 . If the flat-tax rate is 20 percent, then
a. the government collects a total of $20,000 b. Gary pays twice the tax amount Sandy pays c. Gary pays three times the tax amount Sandy pays d. Gary and Sandy pay exactly the same tax amount e. Gary pays $15,000 in taxes
Ellie and Brendan both produce apple pies and vanilla ice cream. If Ellie's opportunity cost of one apple pie is 1/2 gallon of ice cream and Brendan's opportunity cost of one apple pie is 1/4 gallon of ice cream, Ellie has a comparative advantage in the production of ice cream
a. True b. False Indicate whether the statement is true or false