Classical economists think that the government ________ use fiscal policy to dampen the business cycle because prices and wages adjust ________

The local pizza delivery industry currently has a Herfindahl-Hirschman index (HHI) value of 999 and two of the competing pizza shops have considered merging

Because the merger would raise the HHI by 55 points, the Federal Trade Commission would likely A) not challenge the merger. B) challenge the merger. C) allow the merger under the condition that HHI does not rise by more than 55 points as promised. D) allow the merger under the condition that the HHI remain at the premerger level of 999.

The following is an example of risk aversion

a. those applying for a well-paid job tend to be the most qualified b. more reckless drivers opt for cars with fewer safety devices c. the contractor with the lowest bid for a is under-qualified d. Initial Public Offerings (IPOs) seek investors when prospects look good