The U.S. antitrust enforcers will likely block a merger if
A) the merging firms already earn excessive profits.
B) the merging firms are in different markets.
C) the merger will substantially increase market power.
D) the degree of concentration declines as a result of the merger.
Answer: C
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Which of the following is NOT a macroeconomic statement?
A) The U.S. inflation rate was two percent in 2016. B) The price of cell phones decreased by 18 percent last year. C) Gross domestic product in Peru increased 4 percent from 2015 to 2016. D) Aggregate worker productivity decreased by three percent in 2016.
Which of the following is an example of government discretionary spending?
A) defense spending B) net interest paid on government debt held by the public C) Social Security retirement payments D) Medicare benefits for the elderly
Economic efficiency and economic freedom are commonly cited as two major benefits of socialism
a. True b. False Indicate whether the statement is true or false
Two studies published in the New England Journal of Medicine link the risk of breast cancer to alcohol consumption. Young women who have nine drinks per week were reportedly 150 percent more likely to develop breast cancer. According to economic analysis, how would this information affect the market for alcohol?
a. Demand will increase, placing upward pressure on price. b. Supply will decrease, placing downward pressure on price. c. Demand will decrease, placing downward pressure on price. d. Supply will increase, placing upward pressure on price.