Suppose You Have Surveyed a Few Industries and Obtained Information

question 194

Multiple Choice

Suppose you have surveyed a few industries and obtained information about the income elasticity of demand for their products.If you expect that the economy is headed for a long recession, you would advise people to look for jobs in an industry with

• A)a high positive income elasticity coefficient such as 5.
• B)a low positive income elasticity coefficient such as 0.8.
• C)a "high" negative income elasticity coefficient such as -4.
• D)a "low" negative income elasticity coefficient such as -0.2.

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Definitions:

Concentration Ratio

A measure used in economics to assess the degree of market concentration, often used to identify the presence of monopolies or oligopolies.

Market Share

The share of a market that a specific company or product holds, commonly described as a proportion of the market's overall sales.

Industry X

A placeholder term used to refer to a specific, unidentified industry or sector within the economy.

Oligopolies

Market structures characterized by a small number of firms controlling a large proportion of the market share, often leading to limited competition.