GDP overstates the productive capacity of a country when:
A. economic bads like pollution are produced and then must be cleaned up.
B. there is a sizable underground economy.
C. nonmarket production represents a large portion of the economy.
D. working conditions improve, allowing jobs to be completed safer and faster.
Answer: A
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Suppose an industry is composed of 10 firms. Each firm's share of total sales in the industry is 10 percent. If two of the firms merge, then the four-firm concentration ratio in the industry will
A) remain unchanged. B) decrease as there are fewer firms in the industry. C) increase. D) depend on the market condition faced by the industry.
The merger of two pizza restaurant chains would be an example of
A) a horizontal merger. B) a vertical merger. C) a conglomerate merger. D) an independent merger.
The cross elasticity between two goods has been measured at ?1.2 . How are the goods related? Explain. Give an example of goods for which this might be a reasonable measure of cross elasticity
The privately held government debt is that portion of the national debt that
a. must be paid off at some point in the future. b. is owed to domestic and foreign investors. c. cannot be refinanced by issuing new debt. d. is owned by agencies of the federal government.