Which of the following is most likely to increase the Herfindal Index of a particular industry?
a horizontal merger between two of the industry's largest firms
A merger between a maker of household detergents and a fast food chain would be an example of:
a conglomerate merger
When considering business regulation, structuralists take the position that:
an industry that is highly concentrated will behave monopolistically
Social regulation differs from the industrial regulation in that:
social regulation applies to virtually all industries, while industrial regulation applies to a restricted number.
The public interest theory of industrial regulation contends that:
the objective of regulation is to protect the public from the market power inherent in natural monopolies
Suppose the firms in a five-firm industry have market shares of 30, 30, 20, 10 and 10 %, respectively. The Herfindahl Index for the industry is:
Farm groups spend considerable amounts of money to maintain and enlarge political support for farm subsidies. This illustrates:
The food-stamp program which provides vouchers to the poor to be used to purchase food is designed to have what effect in the market for farm products:
increase the demand
a surplus equal to LG will result
Over time, technological change has:
increased productivity in agriculture and reduced the prices of farm products
An extraordinarily small crop of farm products due to drought causes:
a large increase in the price of farm products because the demand for farm products is price inelastic
Insurance companies require male drivers under age 25 to pay higher insurance rates than female drivers under age 25. Craig Raymond, however, is a safer driver than the average female driver under age 25. Craig's higher insurance rate reflects:
The "taste for discrimination" model has been shown to be economically
a bad practice because it results in reduced revenue from not selling to certain groups.
Which of the following measurement issues make interpretation of US poverty rates difficult?
poverty statistics measure income rather than consumption, and some families may be able to consume above the official poverty line.
The equality-efficiency tradeoff refers to:
possible trade-offs between the goals of economic efficiency and greater income equality.
The basic economic argument for greater income equality is that:
a more equal distribution of a given amount of income will increase the total utility of consumers.
Each of the following contributes to income inequality except:
is the movement of individuals and households from one income quintile to another over time.
Suppose you go to a doctor but your health insurance plan does not reimburse you because you have not yet paid enough out-of-pocket for the year to qualify for insurance benefits. This is an example of:
The problem of asymmetric information is that:
health care providers are well-informed, but buyers are not.
Based on what we have learned about income and the demand for health care we would have to conclude that healthcare:
is a normal good
Which of the following statements is correct?
Rising health care costs are a major cause of limited access to the health care system.
the United States devotes about------% of its domestic output to health care.
Illegal immigration positively contributes to the US standard of living by reducing:
prices of goods and services produced with illegal immigrant labor.
A person will be more likely to migrate the:
greater the wages in their prospective new country relative to wages in their home country.
Which of the following statements is true about the effects of illegal immigration in the United States?
Illegal immigration has a negative fiscal impact that falls most heavily on state and local governments
What is the effect of illegal immigration on total employment in the United States?
Total employment increases, but with some substitution of illegal immigrants for domestic-born workers.
"Remittances" occur when:
immigrants send financial payments back to family in their country of origin
Which of the following cases best illustrates economic immigration?
Julio migrated to Australia to take a job paying three times what he earned at home.....
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