In the aggregate expenditures model, if aggregate expenditures (AE) are greater than GDP, then:

The Herfindahl-Hirschman index is measured by

A) adding the market shares of all firms in an industry. B) adding the squares of the market shares of all firms in an industry. C) squaring the sum of the market shares of the all firms in an industry. D) adding the market shares of the four largest firms in an industry.

The Department of Education noticed that for loans granted to students without any strings, the average grade point average of the students decreases dramatically over time, while the students whose loans renew only if they pass their courses tends to stay stable. This could be due to a

a. Adverse selection problem b. Moral hazard problem c. Typical college life phenomenon d. None of the above