The Herfindahl-Hirschman Index approaches ________ when a market consists of a large number of firms of relatively equal size
A) one
B) zero
C) 100
D) 500
B
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What economic concepts are represented in the production possibilities model?
What will be an ideal response?
You have to worry about perfect multicollinearity in the multiple regression model because
A) many economic variables are perfectly correlated. B) the OLS estimator is no longer BLUE. C) the OLS estimator cannot be computed in this situation. D) in real life, economic variables change together all the time.
Compared to the case in which a monopoly insurer offers the consumer a contract, if insurance is competitively provided:
a. any moral hazard or adverse-selection problem is alleviated. b. any moral hazard or adverse-selection problem is worsened. c. the essence of any moral hazard or adverse-selection problem would not change much. d. insurers would no longer offer menus of contracts.
High-wage workers are
A. more likely than low-wage workers to supply more labor when the wage rate rises. B. about as likely as low-wage workers to supply more labor when the wage rate rises. C. less likely than low-wage workers to supply more labor when the wage rate rises. D. about as likely as low-wages workers to supply less labor when the wage rate rises.