What would the Herfindahl-Hirschman Index equal for an industry consisting of 20 firms with each holding a 5% market share?
a. 20
b. 100
c. 500
d. 2,500
c
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Refer to Figure 11.2. Suppose that Ca = 40, MPC = 0.8, I = 10. What is the value of consumption in equilibrium?
A) 32 B) 80 C) 240 D) 320
Accelerated depreciation laws may increase firms' investment in equipment because
a. machines will wear out more rapidly. b. profits will be increased. c. the rental rate on capital will be lowered. d. the price of machines will fall.
Labor-augmenting technological advances increase the marginal productivity of labor
a. True b. False Indicate whether the statement is true or false
If M = $1,200 billion and V = 4, then total spending is _______________billion. Then velocity falls to 2 and M rises to $2,000 billion, so that total spending is now _______________ billion, and GDP has _________________
A) $4,800; $4,000; declined B) $300; $1,000; risen C) $4,800; $4,000; risen D) $1,204; $2,002; risen