Mergers and Economic Concepts Quiz (3)

Describe examples of vertical, horizontal, and conglomerate mergers, and explain the economic basis for each type of merger.

Explain the relevance of the Herfindahl Hirschman index for antitrust policy under the horizontal merger guidelines.

Describe the structure–conduct–performance paradigm, the feedback critique, and their relation to the five forces framework.

Identify whether an industry is best described as perfectly competitive, a monopoly, monopolistically competitive, or an oligopoly.

What is Macroeconomics?

What does economic growth refer to?

• The increase in the production of goods and services in an economy over time

• The decrease in the production of goods and services in an economy over time

• The total monetary value of all final goods and services produced within a country's borders

• The overall performance of individual markets

Why is GDP important?

• It measures economic growth

• It indicates standard of living

• It guides policymaking

• All of the above

How is unemployment measured?

• Through labor force surveys conducted by national statistical agencies

• By calculating the total number of unemployed individuals

• By measuring the GDP of a country

• Through consumer price index

What is inflation?

• The general increase in prices of goods and services over time

• The decrease in prices of goods and services over time

• The stability of prices in an economy

• The total production of goods and services

What is fiscal policy?

• The use of government spending and taxation to influence the economy

• The control of the money supply and interest rates

• The measurement of GDP

• The analysis of trade balances