Suppose that a particular industry has a four-firm concentration ratio of 85 and a Herfindahl index of 3,000. Most likely, this industry would achieve:
A. both productive efficiency and allocative efficiency.
B. allocative efficiency but not productive efficiency.
C. neither productive efficiency nor allocative efficiency.
D. productive efficiency but not allocative efficiency.
Answer: C
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A firm that shuts down in the short run experiences losses equal to its
A) total fixed costs. B) average variable costs. C) total variable costs. D) total variable costs minus its total fixed costs.
Higher rates of anticipated inflation would tend to:
a. increase velocity and decrease nominal GDP. b. increase velocity and increase nominal GDP. c. decrease velocity and decrease nominal GDP. d. decrease velocity and increase nominal GDP.
The marginal propensity to save is always larger than the marginal propensity to consume
Indicate whether the statement is true or false
A counterparty to a financial instrument is always the:
A. person or institution that purchases the financial instrument. B. person or institution that is on the other side of the financial contract. C. government agency guaranteeing the value of the instrument. D. issuer of the financial instrument.