The industry elasticity of demand for good X is ?1.5, while the elasticity of demand for an individual manufacturer of good X is ?9. Based on this information, the Rothschild index of market power is:
A. 1/6, indicating there is significant monopoly power in this industry.
B. 1/6, indicating there is little monopoly power in this industry.
C. 6, indicating there is little monopoly power in this industry.
D. None of the answers are correct.
Answer: B
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The consolidated balance sheet of the all banks in Macroland is presented below: AssetsLiabilitiesCurrency$1,000Deposits$1,000Loans$ 900 Based on this balance sheet the banking system of Macroland can be described as a(n) ________ banking system.
A. 100-percent-reserve B. barter C. fractional-reserve D. government-insured
An isoquant shows
A) the combinations of two inputs that yield the same total product. B) the combinations of two inputs that cost the same total quantity of money. C) the combinations of two goods that yield the same total satisfaction. D) the combination of two goods that cost the same amount of money.
In the value-added approach, GDP is the sum of revenue received by all firms in the economy
a. True b. False
The two main characteristics of a public good are
A. nonrivalry and large negative externalities. B. nonrivalry and nonexcludability. C. nonexcludability and production at rising marginal cost. D. production at constant marginal cost and rising demand.