As a result of the financial crisis of 2007-2009, Freddie Mac and Fannie Mae were brought under the direct control of the government
Indicate whether the statement is true or false
TRUE
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What is "tax incidence"? What determines tax incidence in a competitive market?
What will be an ideal response?
If a firm wants to maximize profits it should
A) hire lots of capital and very little labor since labor needs to be trained. B) hire unskilled labor rather than skilled labor since unskilled labor is cheaper. C) equate the marginal physical product for each input to the price of the input. D) equate the marginal revenue product for each input to the price of the input.
When the long-run aggregate supply curve shifts right, it represents:
A. economic growth. B. pushing our economy beyond normal capacity. C. an unemployment rate of zero. D. negative inflation.
Consider a market characterized by two firms that set the same price in the market, P = $10. Total market demand is QT = 100 ? 2P, of which the two firms share equally. Based on this information, we can conclude:
A. the HHI = 2,500 and the Rothschild index is 2. B. the HHI = 5,000 and the Rothschild index is 1. C. the HHI = 5,000 and the Rothschild index is 2. D. None of the answers are correct.