Which of the following statements about concentration ratios is correct?
A) A high concentration ratio indicates that the industry is a monopoly.
B) A high concentration ratio indicates that the industry is monopolistically competitive.
C) A high concentration ratio suggests that the industry is characterized by strategic independence.
D) A high concentration ratio suggests that the industry is characterized by strategic dependence.
Answer: D
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The baby boomers born in the 1940s and 1950s began entering the work force in the 1960s and 1970s
This demographic event ________ the natural unemployment rate, thereby shifting the short-run Phillips curve ________ and shifting the long-run Phillips curve ________. A) increased; rightward; leftward B) decreased; rightward; rightward C) increased; rightward; rightward D) decreased; leftward; leftward E) increased; leftward; rightward
If the quantity supplied exceeds the quantity demanded, then there is
A) a shortage and the price is below the equilibrium price. B) a shortage and the price is above the equilibrium price. C) a surplus and the price is below the equilibrium price. D) a surplus and the price is above the equilibrium price.
Exhibit 15-8 Aggregate demand and supply curves
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In Exhibit 15-8, supply-siders claimed that the shift from AS1 to AS2 would occur if the government:
A. increased tax rates and increased the amount of government regulation. B. increased tax rates and decreased the amount of government regulation. C. decreased tax rates and increased the amount of government regulation. D. decreased tax rates and decreased the amount of government regulation.
Consider the parallel demand curves in the following graph to answer the question.
Which curve is relatively more elastic at P1?
A. AA B. BB C. It cannot be determined. D. Both have the same slope; therefore both have the same elasticity.