If the number two and number three firms in an industry with 10 firms merge, what happens to that industry's concentration ratio?
A. It rises
B. It falls
C. It remains the same
D. There is not enough information to determine whether it rises, falls, or remains the same.
A. It rises
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Which of the following can shift the demand curve for labor to the right?
a. decrease in the price of the good b. increase in the wage rate c. decrease in the wage rate d. decrease in the marginal physical product e. increase in labor productivity
If a central bank reduces inflation 2 percentage points and this makes output fall 3 percentage points and unemployment rise 5 percentage points for one year, the sacrifice ratio is
a. 5/2. b. 3/2. c. 2/3. d. 2/5.
Which of the following equations shows unit elastic demand?
a. ED < 1 b. ED > 1 c. ED x 1 d. ED = 1
Suppose that the wage for teachers increases relative to other occupations. We know that ________ people will work as teachers, and the total number of hours worked will ________.
A. more; increase B. more; decrease C. fewer; increase D. fewer; decrease