Which one of the following is most likely to increase the Herfindahl index of a particular industry?
A. A conglomerate merger.
B. A vertical merger.
C. A price-fixing arrangement among all the industry firms.
D. A horizontal merger.
Answer: D
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A primary criticism of preferential tax treatment of dividends and capital gains is:
A) there is not a double taxation of dividends B) it adversely affects the distribution of after-tax income C) there is no locked-in effect resulting from taxation of capital gains D) it does not have any impact on efficiency
The larger the hub presence, the larger the hub ____________.
Fill in the blank(s) with the appropriate word(s).
A long-term mismatch between the skills of some workers and the jobs available is a principal cause of ________ unemployment.
A. global B. cyclical C. structural D. frictional
Increases in the productivity of labor tend to
A. increase the marginal revenue product of labor and the wages employers are willing to pay for any given amount of labor. B. decrease the marginal revenue product of labor and increase the wages employers are willing to pay for any given amount of labor. C. increase the marginal revenue product of labor but have no effect on the wages employers are willing to pay for any given amount of labor. D. decrease the marginal revenue product of labor and the wages employers are willing to pay for any given amount of labor.