Which of the following institutions form the private sector in an economy?
a. Only households
b. Households and the government
c. Households, businesses, and foreign firms
d. Households and businesses only
e. Foreign investors and foreign governments
c
You might also like to view...
Merger guidelines developed by the U.S. Department of Justice and the Federal Trade Commission use the Herfindahl-Hirschman Index as a measure of concentration. This index measures concentration in an industry by
A) adding up the market shares of all firms in the industry, squaring this number and then dividing by the number of firms in the industry. B) squaring the market shares of each firm in an industry and then adding up the values of the squares. C) determining the market shares of the four largest firms in the industry, but unlike the concentration ratio, the Index includes sales in the United States by foreign firms. D) squaring the four-firm concentration ratio of the industry and dividing this number by the total number of firms in the industry.
In the early 1960s South Korea was an extremely poor country. However, in 1963, the country began a remarkable economic ascent. What was a direct cause of this?
A) a shift in strategy that emphasized exports rather than imports B) an increase in wages C) an increase in the labor force D) an increase in the money supply E) an emphasis on education, leading to a highly productive labor force
The market price of the product produced by Jones Inc, is $6 per unit, which is higher than the average cost of $4 per unit at the profit maximizing output level. The average variable cost of production is $3.5 per unit. If demand for its product declines due to introduction of cheaper substitutes and the market price of the product falls to $3.8 per unit, which of the following statements will
be true? a. The firm will close down in the short run. b. The firm will continue production as long as the market price is above average variable cost. c. The firm will continue production as long as the market price exceeds fixed cost. d. The firm will minimize it losses by producing where average variable cost equals $3.8.
A Keynesian economist would expect a supply-side tax cut to shift
a. only the aggregate supply curve outward. b. only the aggregate demand curve outward. c. both the aggregate demand and aggregate supply curves outward. d. the aggregate supply curve outward and the aggregate demand curve inward.