What is the difference between a four-firm concentration ratio and a Herfindahl-Hirschman Index?
What will be an ideal response?
A four-firm concentration ratio is the percentage of the total revenue in an industry accounted for by the four largest firms in the industry. The Herfindahl-Hirschman Index sums the squares of the market shares of the 50 largest firms.
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Which of the following is true?
i. Compared to a no-trade situation, exports make consumers better off. ii. Tariffs make consumers worse off. iii. Trade is restricted because protection brings small losses to a large number of people and large gains to a small number of people. A) Only i B) Only ii C) Only iii D) i and iii E) ii and iii
Any point on the aggregate demand schedule must also be
A) a point that clears the market for real money balances. B) a combination of real interest rates and income where aggregate desired expenditures is in balance. C) a point where money demanded is equal to money supplied. D) all of the above.