If there are two firms in an industry and each has 50 percent market share, then the Herfindahl-Hirschman Index equals
A. 2,500.
B. 2,800.
C. 5,000.
D. 6,600.
Answer: C
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Which of the following types of business organization have limited liability? I. proprietorship II. partnership III. corporation
A) I, II only B) II, III only C) III only D) I, II, III
The long-run aggregate supply curve is the relationship between the price level and the quantity of real GDP that is supplied once input prices have had time to fully adjust to that price level
a. True b. False Indicate whether the statement is true or false
Which of the following statements about interest rate determination is most accurate?
a. In both the long run and the short run, the interest rate is determined in the market for loanable funds. b. In both the long run and the short run, the interest rate is determined in the money market. c. In the short run the interest rate is determined in the market for loanable funds, and in the long run it is are determined in the money market. d. In the short run the interest rate is determined in the money market, and in the long run it is determined in the market for loanable funds. e. The interest rate is determined through an interaction between the money market and the loanable funds market.
The main criticism leveled at the rational expectations school of economic thought is that
A. they assume too much influence due to monopoly power. B. they just go too far in ascribing rationality to the general population. C. the assumption that the velocity of circulation is predictable in the short run is not borne out by the facts. D. the assumption that labor union contracts create a rigid wage structure is unrealistic.