A Herfindahl index of 5,000 would indicate:
a. a monopoly.
b. a duopoly (two firms) with equal shares.
c. an oligopoly with three firms.
d. a monopolistically competitive industry.
e. a perfectly competitive market.
b
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Use a graph to show the effects of a contractionary monetary policy to reduce inflation and move an economy back to potential real GDP. Explain what happens to aggregate demand, real GDP, and the price level
What will be an ideal response?
River City has a working age population of 20 million. Of those, 11 million are employed and 1 million are unemployed. The unemployment rate is ________ and the participation rate is __________.
A. 5%; 60%. B. 5%; 55%. C. 8.3%; 55%. D. 8.3%; 60%.
In the simple liquidity-preference model, the money supply curve is:
A. vertical, and moves when people change their rate of savings. B. horizontal, and moves at the sole discretion of the Fed. C. vertical, and moves at the sole discretion of the Fed. D. horizontal, and moves when people change their rate of savings.
The opportunity cost of taking an on-line history class is
A) the cost of tuition and fees only. B) zero because there is no classroom time involved if you are enrolled in the course. C) the value of the time spent on line. D) the knowledge and enjoyment you receive from taking the class. E) equal to the highest value of an alternative use of the time and money spent on the class.