Question 1:
The banking market in Athens, Ohio, currently has four banks with market shares of 60%, 20%, 15% and 5%. The two smallest banks have proposed merging. Under the standard merger guidelines of the Federal Reserve and the Justice Department, is the merger likely to be approved? Why or why not? In your answer, be as quantitative as possible.
Question 2:
Suppose that the country of Bigu has a population of 127 million, of which 83 million are in the working-age population. Of those, 25 million are not in the labor force and 52 million are employed.
a. Calculate the working-age population as percentage of the population.
b. Calculate the labor-force participation rate.
c. Calculate the unemployment rate