1. )

When the price of one good increases, the associated income effect is represented by a move from one indifference curve to a:

higher indifference curve since real income is now lower.

higher indifference curve since real income is now higher.

lower indifference curve since real income is now higher.

lower indifference curve since real income is now lower.

2.Which of the following is a sunk cost for Gary's clothing store?

He purchases a new mannequin unit for the front display

He buys more shirts from a wholesaler

He hires a new employee that is working on commission

He decides to change locations but has 9 months remaining on the lease and cannot sublet it

3.Suppose that there are two industries, A and B. There are five firms in industry A with sales at $5 million, $2 million, $1 million, $1 million, and $1 million, respectively. There are four firms in industry B with equal sales of $2.5 million for each firm. The four-firm concentration ratio for industry A is:

0.8.

0.9.

0.7.

1.0.

4.Suppose that there are two industries, A and B. There are five firms in industry A with sales at $5 million, $2 million, $1 million, $1 million, and $1 million, respectively. There are four firms in industry B with equal sales of $2.5 million for each firm. The HHI for industry B is:

2,500.

1,800.

3,200.

2,800.