An industry in which there are five firms each accounting for 20 percent of the market has an HHI of 2,000.
Answer the following statement true (T) or false (F)
True
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A cartel is
A) an agreement among competitors to regulate prices or output. B) a bond with no fixed maturity date. C) a contract between manufacturers and retailers. D) a highly leveraged buy-out. E) a shopping center in which all lessees pay the same percentage of common operating costs.
In a saving—investment diagram for a small open economy
A) the saving curve is vertical at some fixed level of output. B) the saving curve is horizontal at some fixed interest rate. C) the real interest rate is fixed at the world real interest rate. D) equilibrium requires that Sd = Id.
Other things being equal, an increase in the price of a good leads to an increase in the amount produced. This is known as
A) the law of demand. B) the law of supply. C) ceteris paribus. D) equilibrium.
The fact that we cannot operate at a point outside a production possibilities frontier indicates there is
A. increasing opportunity cost. B. unemployment. C. constant opportunity cost. D. scarcity.