Figure 4-25
Refer to . The equilibrium price before the tax is imposed is
a.
P1.
b.
P2.
c.
P3.
d.
impossible to determine from the figure.
a
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The first banking crisis of the 1930s was probably caused by
a. low farm prices. b. the stock market crash. c. antagonism between Wall Street banks and Main Street banks. d. Bank of England attempts to preserve the gold standard by raising interest rates.
The price elasticity of demand for eggs is 0.27. Thus, 0.27 is the:
A. percentage change in the quantity demanded of eggs when the price of eggs increases by one percent. B. size of the shift in the demand for eggs when the price of eggs changes by one percent. C. size of the percentage change in the quantity supplied of eggs when the demand for eggs changes due to a price change. D. percentage change in the price of eggs when the quantity demanded of eggs increases by one percent.
The Department of Justice guidelines call for government intervention in mergers when the Herfindahl-Hirschman Index in that industry is
a. 0 b. less than 100 c. between 1,000 and 1,800 d. less than 1,800 e. more than 1,800
The economist Joseph Schumpeter argued that industrial concentration, in which a relatively small number of firms control the market place, actually ________ the rate of ________.
A. increased; technological advance B. decreased; technological advance C. decreased; market competitiveness D. increased; market competitiveness