The local banking industry currently has a Herfindahl-Hirschman index (HHI) value of 2175 and two of the competing banks have considered merging. Because the merger would raise the HHI by 25 points, the Federal Trade Commission would likely
A) challenge the merger.
B) not challenge the merger.
C) allow the merger under the condition that HHI does not rise by more than 25 points as promised.
D) allow the merger under the condition that the HHI remain at the premerger level of 2175.
B
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The central question in economics is how to
A. make the best use of scarce resources. B. use government planning agencies. C. induce people to want less. D. increase human knowledge.
Extreme global poverty is defined as ________
A) income of less than one dollar a day B) foreign debt in excess of 100% of GDP C) one percent of U.S. income D) one-fourth of U.S. income
According to the Keynesian cross model, equilibrium occurs where: a. the 45-degree line intersects the aggregate expenditure line
b. the potential GDP line intersects the aggregate expenditure line. c. the 45-degree line intersects the potential GDP line. d. the potential GDP line intersects the nominal GDP line.
Figure 9.2 represents the market for used cameras. Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25 for a lemon (low-quality) used camera. If buyers believe that 50% of used cameras in the market are lemons (low quality), how many lemons (low quality) will be supplied by sellers?
A. 10 B. 15 C. 20 D. 25